Correlation Between Zijin Mining and ADDUS HOMECARE
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and ADDUS HOMECARE 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 ADDUS HOMECARE 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 ADDUS HOMECARE, you can compare the effects of market volatilities on Zijin Mining and ADDUS HOMECARE 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 ADDUS HOMECARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and ADDUS HOMECARE.
Diversification Opportunities for Zijin Mining and ADDUS HOMECARE
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and ADDUS is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and ADDUS HOMECARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADDUS HOMECARE 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 ADDUS HOMECARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADDUS HOMECARE has no effect on the direction of Zijin Mining i.e., Zijin Mining and ADDUS HOMECARE go up and down completely randomly.
Pair Corralation between Zijin Mining and ADDUS HOMECARE
Assuming the 90 days horizon Zijin Mining Group is expected to generate 2.29 times more return on investment than ADDUS HOMECARE. However, Zijin Mining is 2.29 times more volatile than ADDUS HOMECARE. It trades about 0.08 of its potential returns per unit of risk. ADDUS HOMECARE is currently generating about 0.14 per unit of risk. If you would invest 172.00 in Zijin Mining Group on October 25, 2024 and sell it today you would earn a total of 6.00 from holding Zijin Mining Group or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Zijin Mining Group vs. ADDUS HOMECARE
Performance |
| Timeline |
| Zijin Mining Group |
| ADDUS HOMECARE |
Zijin Mining and ADDUS HOMECARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and ADDUS HOMECARE
The main advantage of trading using opposite Zijin Mining and ADDUS HOMECARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, ADDUS HOMECARE 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 ADDUS HOMECARE will offset losses from the drop in ADDUS HOMECARE's long position.| Zijin Mining vs. Salesforce | Zijin Mining vs. FLOW TRADERS LTD | Zijin Mining vs. Hyatt Hotels | Zijin Mining vs. TRADELINK ELECTRON |
| ADDUS HOMECARE vs. Check Point Software | ADDUS HOMECARE vs. CANON MARKETING JP | ADDUS HOMECARE vs. UNIVMUSIC GRPADR050 | ADDUS HOMECARE vs. MARKET VECTR RETAIL |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Transaction History View history of all your transactions and understand their impact on performance |