Correlation Between Zijin Mining and AEGEAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and AEGEAN AIRLINES 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 AEGEAN AIRLINES 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 AEGEAN AIRLINES, you can compare the effects of market volatilities on Zijin Mining and AEGEAN AIRLINES 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 AEGEAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and AEGEAN AIRLINES.
Diversification Opportunities for Zijin Mining and AEGEAN AIRLINES
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and AEGEAN is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and AEGEAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEGEAN AIRLINES 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 AEGEAN AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEGEAN AIRLINES has no effect on the direction of Zijin Mining i.e., Zijin Mining and AEGEAN AIRLINES go up and down completely randomly.
Pair Corralation between Zijin Mining and AEGEAN AIRLINES
Assuming the 90 days horizon Zijin Mining Group is expected to generate 2.81 times more return on investment than AEGEAN AIRLINES. However, Zijin Mining is 2.81 times more volatile than AEGEAN AIRLINES. It trades about -0.03 of its potential returns per unit of risk. AEGEAN AIRLINES is currently generating about -0.19 per unit of risk. If you would invest 197.00 in Zijin Mining Group on August 28, 2024 and sell it today you would lose (16.00) from holding Zijin Mining Group or give up 8.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. AEGEAN AIRLINES
Performance |
| Timeline |
| Zijin Mining Group |
| AEGEAN AIRLINES |
Zijin Mining and AEGEAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and AEGEAN AIRLINES
The main advantage of trading using opposite Zijin Mining and AEGEAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, AEGEAN AIRLINES 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 AEGEAN AIRLINES will offset losses from the drop in AEGEAN AIRLINES's long position.| Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. NMI Holdings | Zijin Mining vs. Origin Agritech | Zijin Mining vs. SIVERS SEMICONDUCTORS AB |
| AEGEAN AIRLINES vs. COMBA TELECOM SYST | AEGEAN AIRLINES vs. Rogers Communications | AEGEAN AIRLINES vs. INTERSHOP Communications Aktiengesellschaft | AEGEAN AIRLINES vs. China Communications Services |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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