Correlation Between CeoTronics and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both CeoTronics and Zijin Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CeoTronics and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CeoTronics AG and Zijin Mining Group, you can compare the effects of market volatilities on CeoTronics and Zijin Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CeoTronics with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CeoTronics and Zijin Mining.
Diversification Opportunities for CeoTronics and Zijin Mining
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CeoTronics and Zijin is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding CeoTronics AG and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group and CeoTronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CeoTronics AG are associated (or correlated) with Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of CeoTronics i.e., CeoTronics and Zijin Mining go up and down completely randomly.
Pair Corralation between CeoTronics and Zijin Mining
Assuming the 90 days trading horizon CeoTronics AG is expected to generate 0.59 times more return on investment than Zijin Mining. However, CeoTronics AG is 1.68 times less risky than Zijin Mining. It trades about -0.03 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.07 per unit of risk. If you would invest 559.00 in CeoTronics AG on August 29, 2024 and sell it today you would lose (9.00) from holding CeoTronics AG or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CeoTronics AG vs. Zijin Mining Group
Performance |
| Timeline |
| CeoTronics AG |
| Zijin Mining Group |
CeoTronics and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CeoTronics and Zijin Mining
The main advantage of trading using opposite CeoTronics and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CeoTronics position performs unexpectedly, Zijin Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zijin Mining will offset losses from the drop in Zijin Mining's long position.| CeoTronics vs. Beyond Meat | CeoTronics vs. JJ SNACK FOODS | CeoTronics vs. Globe Trade Centre | CeoTronics vs. JAPAN TOBACCO UNSPADR12 |
| Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. NMI Holdings | Zijin Mining vs. Origin Agritech | Zijin Mining vs. SIVERS SEMICONDUCTORS AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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