Correlation Between Eat Beyond and Zhaojin Mining
Can any of the company-specific risk be diversified away by investing in both Eat Beyond and Zhaojin 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 Eat Beyond and Zhaojin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eat Beyond Global and Zhaojin Mining Industry, you can compare the effects of market volatilities on Eat Beyond and Zhaojin 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 Eat Beyond with a short position of Zhaojin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and Zhaojin Mining.
Diversification Opportunities for Eat Beyond and Zhaojin Mining
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eat and Zhaojin is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and Zhaojin Mining Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhaojin Mining Industry and Eat Beyond 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 Eat Beyond Global are associated (or correlated) with Zhaojin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhaojin Mining Industry has no effect on the direction of Eat Beyond i.e., Eat Beyond and Zhaojin Mining go up and down completely randomly.
Pair Corralation between Eat Beyond and Zhaojin Mining
Assuming the 90 days horizon Eat Beyond Global is expected to generate 17.02 times more return on investment than Zhaojin Mining. However, Eat Beyond is 17.02 times more volatile than Zhaojin Mining Industry. It trades about 0.15 of its potential returns per unit of risk. Zhaojin Mining Industry is currently generating about -0.07 per unit of risk. If you would invest 5.10 in Eat Beyond Global on August 26, 2024 and sell it today you would earn a total of 4.30 from holding Eat Beyond Global or generate 84.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eat Beyond Global vs. Zhaojin Mining Industry
Performance |
| Timeline |
| Eat Beyond Global |
| Zhaojin Mining Industry |
Eat Beyond and Zhaojin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and Zhaojin Mining
The main advantage of trading using opposite Eat Beyond and Zhaojin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, Zhaojin 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 Zhaojin Mining will offset losses from the drop in Zhaojin Mining's long position.| Eat Beyond vs. Blackstone Group | Eat Beyond vs. BlackRock | Eat Beyond vs. Apollo Global Management | Eat Beyond vs. Bank of New |
| Zhaojin Mining vs. Aurion Resources | Zhaojin Mining vs. Liberty Gold Corp | Zhaojin Mining vs. Orezone Gold Corp | Zhaojin Mining vs. Radisson Mining Resources |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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