Correlation Between Zijin Mining and BANK HANDLOWY
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and BANK HANDLOWY 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 BANK HANDLOWY 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 BANK HANDLOWY, you can compare the effects of market volatilities on Zijin Mining and BANK HANDLOWY 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 BANK HANDLOWY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and BANK HANDLOWY.
Diversification Opportunities for Zijin Mining and BANK HANDLOWY
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and BANK is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY 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 BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of Zijin Mining i.e., Zijin Mining and BANK HANDLOWY go up and down completely randomly.
Pair Corralation between Zijin Mining and BANK HANDLOWY
Assuming the 90 days horizon Zijin Mining is expected to generate 1.12 times less return on investment than BANK HANDLOWY. But when comparing it to its historical volatility, Zijin Mining Group is 1.15 times less risky than BANK HANDLOWY. It trades about 0.06 of its potential returns per unit of risk. BANK HANDLOWY is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,255 in BANK HANDLOWY on September 23, 2024 and sell it today you would earn a total of 840.00 from holding BANK HANDLOWY or generate 66.93% 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. BANK HANDLOWY
Performance |
| Timeline |
| Zijin Mining Group |
| BANK HANDLOWY |
Zijin Mining and BANK HANDLOWY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and BANK HANDLOWY
The main advantage of trading using opposite Zijin Mining and BANK HANDLOWY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, BANK HANDLOWY 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 BANK HANDLOWY will offset losses from the drop in BANK HANDLOWY's 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 |
| BANK HANDLOWY vs. GREENX METALS LTD | BANK HANDLOWY vs. Zijin Mining Group | BANK HANDLOWY vs. LION ONE METALS | BANK HANDLOWY vs. GRIFFIN MINING LTD |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |