Correlation Between Zijin Mining and USWE SPORTS
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and USWE SPORTS 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 USWE SPORTS 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 USWE SPORTS AB, you can compare the effects of market volatilities on Zijin Mining and USWE SPORTS 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 USWE SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and USWE SPORTS.
Diversification Opportunities for Zijin Mining and USWE SPORTS
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and USWE is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and USWE SPORTS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USWE SPORTS 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 USWE SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USWE SPORTS AB has no effect on the direction of Zijin Mining i.e., Zijin Mining and USWE SPORTS go up and down completely randomly.
Pair Corralation between Zijin Mining and USWE SPORTS
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.06 times more return on investment than USWE SPORTS. However, Zijin Mining is 1.06 times more volatile than USWE SPORTS AB. It trades about 0.03 of its potential returns per unit of risk. USWE SPORTS AB is currently generating about -0.04 per unit of risk. If you would invest 178.00 in Zijin Mining Group on September 14, 2024 and sell it today you would earn a total of 8.00 from holding Zijin Mining Group or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. USWE SPORTS AB
Performance |
| Timeline |
| Zijin Mining Group |
| USWE SPORTS AB |
Zijin Mining and USWE SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and USWE SPORTS
The main advantage of trading using opposite Zijin Mining and USWE SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, USWE SPORTS 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 USWE SPORTS will offset losses from the drop in USWE SPORTS's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Vale SA | Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. SIVERS SEMICONDUCTORS AB |
| USWE SPORTS vs. Superior Plus Corp | USWE SPORTS vs. SIVERS SEMICONDUCTORS AB | USWE SPORTS vs. Norsk Hydro ASA | USWE SPORTS vs. Reliance Steel Aluminum |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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