Correlation Between CPU SOFTWAREHOUSE and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPU SOFTWAREHOUSE and Zijin Mining Group, you can compare the effects of market volatilities on CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPU SOFTWAREHOUSE and Zijin Mining.
Diversification Opportunities for CPU SOFTWAREHOUSE and Zijin Mining
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CPU and Zijin is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE 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 CPU SOFTWAREHOUSE i.e., CPU SOFTWAREHOUSE and Zijin Mining go up and down completely randomly.
Pair Corralation between CPU SOFTWAREHOUSE and Zijin Mining
Assuming the 90 days trading horizon CPU SOFTWAREHOUSE is expected to generate 0.66 times more return on investment than Zijin Mining. However, CPU SOFTWAREHOUSE is 1.51 times less risky than Zijin Mining. It trades about 0.11 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 93.00 in CPU SOFTWAREHOUSE on August 29, 2024 and sell it today you would earn a total of 5.00 from holding CPU SOFTWAREHOUSE or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CPU SOFTWAREHOUSE vs. Zijin Mining Group
Performance |
| Timeline |
| CPU SOFTWAREHOUSE |
| Zijin Mining Group |
CPU SOFTWAREHOUSE and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPU SOFTWAREHOUSE and Zijin Mining
The main advantage of trading using opposite CPU SOFTWAREHOUSE and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPU SOFTWAREHOUSE 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.| CPU SOFTWAREHOUSE vs. Apple Inc | CPU SOFTWAREHOUSE vs. Apple Inc | CPU SOFTWAREHOUSE vs. Microsoft | CPU SOFTWAREHOUSE vs. Microsoft |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |