Correlation Between Zijin Mining and CrowdStrike Holdings
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and CrowdStrike Holdings 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 CrowdStrike Holdings 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 CrowdStrike Holdings, you can compare the effects of market volatilities on Zijin Mining and CrowdStrike Holdings 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 CrowdStrike Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and CrowdStrike Holdings.
Diversification Opportunities for Zijin Mining and CrowdStrike Holdings
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and CrowdStrike is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and CrowdStrike Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CrowdStrike Holdings 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 CrowdStrike Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CrowdStrike Holdings has no effect on the direction of Zijin Mining i.e., Zijin Mining and CrowdStrike Holdings go up and down completely randomly.
Pair Corralation between Zijin Mining and CrowdStrike Holdings
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the CrowdStrike Holdings. In addition to that, Zijin Mining is 1.59 times more volatile than CrowdStrike Holdings. It trades about -0.05 of its total potential returns per unit of risk. CrowdStrike Holdings is currently generating about 0.31 per unit of volatility. If you would invest 25,210 in CrowdStrike Holdings on August 29, 2024 and sell it today you would earn a total of 9,820 from holding CrowdStrike Holdings or generate 38.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Zijin Mining Group vs. CrowdStrike Holdings
Performance |
| Timeline |
| Zijin Mining Group |
| CrowdStrike Holdings |
Zijin Mining and CrowdStrike Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and CrowdStrike Holdings
The main advantage of trading using opposite Zijin Mining and CrowdStrike Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, CrowdStrike Holdings 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 CrowdStrike Holdings will offset losses from the drop in CrowdStrike Holdings' long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Rio Tinto Group |
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.
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