Correlation Between Zijin Mining and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Bloom Energy 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 Zijin Mining and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zijin Mining Group and Bloom Energy, you can compare the effects of market volatilities on Zijin Mining and Bloom Energy 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 Zijin Mining with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Bloom Energy.
Diversification Opportunities for Zijin Mining and Bloom Energy
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zijin and Bloom is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Bloom Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Energy and Zijin Mining 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 Zijin Mining Group are associated (or correlated) with Bloom Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloom Energy has no effect on the direction of Zijin Mining i.e., Zijin Mining and Bloom Energy go up and down completely randomly.
Pair Corralation between Zijin Mining and Bloom Energy
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.34 times more return on investment than Bloom Energy. However, Zijin Mining Group is 2.94 times less risky than Bloom Energy. It trades about 0.09 of its potential returns per unit of risk. Bloom Energy is currently generating about -0.02 per unit of risk. If you would invest 173.00 in Zijin Mining Group on November 7, 2024 and sell it today you would earn a total of 7.00 from holding Zijin Mining Group or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Zijin Mining Group vs. Bloom Energy
Performance |
| Timeline |
| Zijin Mining Group |
| Bloom Energy |
Zijin Mining and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Bloom Energy
The main advantage of trading using opposite Zijin Mining and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Bloom Energy 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 Bloom Energy will offset losses from the drop in Bloom Energy's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Vale SA | Zijin Mining vs. Vale SA |
| Bloom Energy vs. Global Ship Lease | Bloom Energy vs. VIVA WINE GROUP | Bloom Energy vs. HYATT HOTELS A | Bloom Energy vs. Summit Hotel Properties |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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