Correlation Between Zijin Mining and 2G ENERGY
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and 2G 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 2G 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 2G ENERGY , you can compare the effects of market volatilities on Zijin Mining and 2G 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 2G ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and 2G ENERGY.
Diversification Opportunities for Zijin Mining and 2G ENERGY
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and 2GB is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and 2G ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2G 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 2G ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2G ENERGY has no effect on the direction of Zijin Mining i.e., Zijin Mining and 2G ENERGY go up and down completely randomly.
Pair Corralation between Zijin Mining and 2G ENERGY
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.56 times more return on investment than 2G ENERGY. However, Zijin Mining is 1.56 times more volatile than 2G ENERGY . It trades about 0.07 of its potential returns per unit of risk. 2G ENERGY is currently generating about 0.01 per unit of risk. If you would invest 111.00 in Zijin Mining Group on September 1, 2024 and sell it today you would earn a total of 66.00 from holding Zijin Mining Group or generate 59.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.64% |
Values | Daily Returns |
Zijin Mining Group vs. 2G ENERGY
Performance |
Timeline |
Zijin Mining Group |
2G ENERGY |
Zijin Mining and 2G ENERGY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zijin Mining and 2G ENERGY
The main advantage of trading using opposite Zijin Mining and 2G ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, 2G 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 2G ENERGY will offset losses from the drop in 2G ENERGY's long position.Zijin Mining vs. Astral Foods Limited | Zijin Mining vs. GALENA MINING LTD | Zijin Mining vs. CN MODERN DAIRY | Zijin Mining vs. TYSON FOODS A |
2G ENERGY vs. Australian Agricultural | 2G ENERGY vs. Ultra Clean Holdings | 2G ENERGY vs. Charter Communications | 2G ENERGY vs. Consolidated Communications Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |