Correlation Between Zijin Mining and BORR DRILLING
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and BORR DRILLING 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 BORR DRILLING 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 BORR DRILLING NEW, you can compare the effects of market volatilities on Zijin Mining and BORR DRILLING 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 BORR DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and BORR DRILLING.
Diversification Opportunities for Zijin Mining and BORR DRILLING
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and BORR is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and BORR DRILLING NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BORR DRILLING NEW 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 BORR DRILLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BORR DRILLING NEW has no effect on the direction of Zijin Mining i.e., Zijin Mining and BORR DRILLING go up and down completely randomly.
Pair Corralation between Zijin Mining and BORR DRILLING
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.07 times more return on investment than BORR DRILLING. However, Zijin Mining is 1.07 times more volatile than BORR DRILLING NEW. It trades about 0.06 of its potential returns per unit of risk. BORR DRILLING NEW is currently generating about 0.01 per unit of risk. If you would invest 87.00 in Zijin Mining Group on August 26, 2024 and sell it today you would earn a total of 96.00 from holding Zijin Mining Group or generate 110.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. BORR DRILLING NEW
Performance |
| Timeline |
| Zijin Mining Group |
| BORR DRILLING NEW |
Zijin Mining and BORR DRILLING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and BORR DRILLING
The main advantage of trading using opposite Zijin Mining and BORR DRILLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, BORR DRILLING 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 BORR DRILLING will offset losses from the drop in BORR DRILLING'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 |
| BORR DRILLING vs. Soken Chemical Engineering | BORR DRILLING vs. Quaker Chemical | BORR DRILLING vs. TIANDE CHEMICAL | BORR DRILLING vs. HOCHSCHILD MINING |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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