Correlation Between Zijin Mining and Boston Beer
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Boston Beer 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 Boston Beer 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 The Boston Beer, you can compare the effects of market volatilities on Zijin Mining and Boston Beer 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 Boston Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Boston Beer.
Diversification Opportunities for Zijin Mining and Boston Beer
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zijin and Boston is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and The Boston Beer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Beer 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 Boston Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Beer has no effect on the direction of Zijin Mining i.e., Zijin Mining and Boston Beer go up and down completely randomly.
Pair Corralation between Zijin Mining and Boston Beer
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Boston Beer. In addition to that, Zijin Mining is 2.3 times more volatile than The Boston Beer. It trades about -0.11 of its total potential returns per unit of risk. The Boston Beer is currently generating about 0.16 per unit of volatility. If you would invest 27,800 in The Boston Beer on August 24, 2024 and sell it today you would earn a total of 1,520 from holding The Boston Beer or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zijin Mining Group vs. The Boston Beer
Performance |
| Timeline |
| Zijin Mining Group |
| Boston Beer |
Zijin Mining and Boston Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Boston Beer
The main advantage of trading using opposite Zijin Mining and Boston Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Boston Beer 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 Boston Beer will offset losses from the drop in Boston Beer'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 |
| Boston Beer vs. DXC Technology Co | Boston Beer vs. Micron Technology | Boston Beer vs. UNIVMUSIC GRPADR050 | Boston Beer vs. Align Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |