Correlation Between Zijin Mining and 24SEVENOFFICE GROUP
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP AB, you can compare the effects of market volatilities on Zijin Mining and 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and 24SEVENOFFICE GROUP.
Diversification Opportunities for Zijin Mining and 24SEVENOFFICE GROUP
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and 24SEVENOFFICE is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and 24SEVENOFFICE GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 24SEVENOFFICE GROUP has no effect on the direction of Zijin Mining i.e., Zijin Mining and 24SEVENOFFICE GROUP go up and down completely randomly.
Pair Corralation between Zijin Mining and 24SEVENOFFICE GROUP
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.62 times more return on investment than 24SEVENOFFICE GROUP. However, Zijin Mining Group is 1.61 times less risky than 24SEVENOFFICE GROUP. It trades about 0.02 of its potential returns per unit of risk. 24SEVENOFFICE GROUP AB is currently generating about -0.06 per unit of risk. If you would invest 177.00 in Zijin Mining Group on October 30, 2024 and sell it today you would earn a total of 1.00 from holding Zijin Mining Group or generate 0.56% 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. 24SEVENOFFICE GROUP AB
Performance |
| Timeline |
| Zijin Mining Group |
| 24SEVENOFFICE GROUP |
Zijin Mining and 24SEVENOFFICE GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and 24SEVENOFFICE GROUP
The main advantage of trading using opposite Zijin Mining and 24SEVENOFFICE GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP will offset losses from the drop in 24SEVENOFFICE GROUP's long position.| Zijin Mining vs. United Breweries Co | Zijin Mining vs. National Beverage Corp | Zijin Mining vs. Dairy Farm International | Zijin Mining vs. Hanison Construction Holdings |
| 24SEVENOFFICE GROUP vs. Broadridge Financial Solutions | 24SEVENOFFICE GROUP vs. Adtalem Global Education | 24SEVENOFFICE GROUP vs. betterU Education Corp | 24SEVENOFFICE GROUP vs. G8 EDUCATION |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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