Correlation Between Zijin Mining and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Jupiter Fund 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 Jupiter Fund 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 Jupiter Fund Management, you can compare the effects of market volatilities on Zijin Mining and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Jupiter Fund.
Diversification Opportunities for Zijin Mining and Jupiter Fund
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zijin and Jupiter is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Zijin Mining i.e., Zijin Mining and Jupiter Fund go up and down completely randomly.
Pair Corralation between Zijin Mining and Jupiter Fund
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Jupiter Fund. In addition to that, Zijin Mining is 2.65 times more volatile than Jupiter Fund Management. It trades about -0.07 of its total potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.04 per unit of volatility. If you would invest 95.00 in Jupiter Fund Management on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Jupiter Fund Management or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Jupiter Fund Management
Performance |
| Timeline |
| Zijin Mining Group |
| Jupiter Fund Management |
Zijin Mining and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Jupiter Fund
The main advantage of trading using opposite Zijin Mining and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund'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 |
| Jupiter Fund vs. Superior Plus Corp | Jupiter Fund vs. NMI Holdings | Jupiter Fund vs. Origin Agritech | Jupiter Fund vs. SIVERS SEMICONDUCTORS AB |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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