Correlation Between Zijin Mining and SYSTEMAIR
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and SYSTEMAIR 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 SYSTEMAIR 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 SYSTEMAIR AB, you can compare the effects of market volatilities on Zijin Mining and SYSTEMAIR 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 SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and SYSTEMAIR.
Diversification Opportunities for Zijin Mining and SYSTEMAIR
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zijin and SYSTEMAIR is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB 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 SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of Zijin Mining i.e., Zijin Mining and SYSTEMAIR go up and down completely randomly.
Pair Corralation between Zijin Mining and SYSTEMAIR
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.09 times more return on investment than SYSTEMAIR. However, Zijin Mining is 1.09 times more volatile than SYSTEMAIR AB. It trades about 0.05 of its potential returns per unit of risk. SYSTEMAIR AB is currently generating about 0.05 per unit of risk. If you would invest 100.00 in Zijin Mining Group on October 13, 2024 and sell it today you would earn a total of 82.00 from holding Zijin Mining Group or generate 82.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Zijin Mining Group vs. SYSTEMAIR AB
Performance |
| Timeline |
| Zijin Mining Group |
| SYSTEMAIR AB |
Zijin Mining and SYSTEMAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and SYSTEMAIR
The main advantage of trading using opposite Zijin Mining and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR's long position.| Zijin Mining vs. INDO RAMA SYNTHETIC | Zijin Mining vs. Columbia Sportswear | Zijin Mining vs. TRI CHEMICAL LABORATINC | Zijin Mining vs. PLAYMATES TOYS |
| SYSTEMAIR vs. GRIFFIN MINING LTD | SYSTEMAIR vs. Playa Hotels Resorts | SYSTEMAIR vs. Jacquet Metal Service | SYSTEMAIR vs. Zijin Mining 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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