Correlation Between Zijin Mining and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and XLMedia PLC 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 XLMedia PLC 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 XLMedia PLC, you can compare the effects of market volatilities on Zijin Mining and XLMedia PLC 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 XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and XLMedia PLC.
Diversification Opportunities for Zijin Mining and XLMedia PLC
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and XLMedia is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC 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 XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of Zijin Mining i.e., Zijin Mining and XLMedia PLC go up and down completely randomly.
Pair Corralation between Zijin Mining and XLMedia PLC
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.46 times more return on investment than XLMedia PLC. However, Zijin Mining Group is 2.15 times less risky than XLMedia PLC. It trades about -0.05 of its potential returns per unit of risk. XLMedia PLC is currently generating about -0.06 per unit of risk. If you would invest 188.00 in Zijin Mining Group on October 1, 2024 and sell it today you would lose (16.00) from holding Zijin Mining Group or give up 8.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. XLMedia PLC
Performance |
| Timeline |
| Zijin Mining Group |
| XLMedia PLC |
Zijin Mining and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and XLMedia PLC
The main advantage of trading using opposite Zijin Mining and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Vale SA |
| XLMedia PLC vs. Alphabet | XLMedia PLC vs. Meta Platforms | XLMedia PLC vs. Meta Platforms | XLMedia PLC vs. AIRBNB INC DL 01 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |