Correlation Between Comba Telecom and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Comba Telecom 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 Comba Telecom and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comba Telecom Systems and Zijin Mining Group, you can compare the effects of market volatilities on Comba Telecom 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 Comba Telecom with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and Zijin Mining.
Diversification Opportunities for Comba Telecom and Zijin Mining
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Comba and Zijin is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems 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 Comba Telecom 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 Comba Telecom Systems 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 Comba Telecom i.e., Comba Telecom and Zijin Mining go up and down completely randomly.
Pair Corralation between Comba Telecom and Zijin Mining
Assuming the 90 days trading horizon Comba Telecom is expected to generate 1.88 times less return on investment than Zijin Mining. In addition to that, Comba Telecom is 1.49 times more volatile than Zijin Mining Group. It trades about 0.02 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about 0.05 per unit of volatility. If you would invest 98.00 in Zijin Mining Group on October 19, 2024 and sell it today you would earn a total of 79.00 from holding Zijin Mining Group or generate 80.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comba Telecom Systems vs. Zijin Mining Group
Performance |
| Timeline |
| Comba Telecom Systems |
| Zijin Mining Group |
Comba Telecom and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comba Telecom and Zijin Mining
The main advantage of trading using opposite Comba Telecom and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom 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.| Comba Telecom vs. FARM 51 GROUP | Comba Telecom vs. ECHO INVESTMENT ZY | Comba Telecom vs. Guangdong Investment Limited | Comba Telecom vs. CDL INVESTMENT |
| Zijin Mining vs. TOREX SEMICONDUCTOR LTD | Zijin Mining vs. BE Semiconductor Industries | Zijin Mining vs. Nordic Semiconductor ASA | Zijin Mining vs. Tencent Music Entertainment |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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