Correlation Between Zijin Mining and Apple
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Zijin Mining and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Apple.
Diversification Opportunities for Zijin Mining and Apple
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Apple is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Zijin Mining i.e., Zijin Mining and Apple go up and down completely randomly.
Pair Corralation between Zijin Mining and Apple
Assuming the 90 days horizon Zijin Mining Group is expected to generate 2.25 times more return on investment than Apple. However, Zijin Mining is 2.25 times more volatile than Apple Inc. It trades about 0.08 of its potential returns per unit of risk. Apple Inc is currently generating about 0.07 per unit of risk. If you would invest 110.00 in Zijin Mining Group on August 24, 2024 and sell it today you would earn a total of 72.00 from holding Zijin Mining Group or generate 65.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Zijin Mining Group vs. Apple Inc
Performance |
| Timeline |
| Zijin Mining Group |
| Apple Inc |
Zijin Mining and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Apple
The main advantage of trading using opposite Zijin Mining and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. NMI Holdings | Zijin Mining vs. Origin Agritech |
| Apple vs. MGIC INVESTMENT | Apple vs. VITEC SOFTWARE GROUP | Apple vs. EAT WELL INVESTMENT | Apple vs. Zijin Mining Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |