Correlation Between Zijin Mining and Blackstone
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on Zijin Mining and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Blackstone.
Diversification Opportunities for Zijin Mining and Blackstone
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Blackstone is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Zijin Mining i.e., Zijin Mining and Blackstone go up and down completely randomly.
Pair Corralation between Zijin Mining and Blackstone
Assuming the 90 days horizon Zijin Mining is expected to generate 1.03 times less return on investment than Blackstone. In addition to that, Zijin Mining is 1.55 times more volatile than Blackstone Group. It trades about 0.06 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.1 per unit of volatility. If you would invest 6,616 in Blackstone Group on September 13, 2024 and sell it today you would earn a total of 11,186 from holding Blackstone Group or generate 169.07% 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. Blackstone Group
Performance |
| Timeline |
| Zijin Mining Group |
| Blackstone Group |
Zijin Mining and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Blackstone
The main advantage of trading using opposite Zijin Mining and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone'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 |
| Blackstone vs. Zijin Mining Group | Blackstone vs. Chuangs China Investments | Blackstone vs. Gladstone Investment | Blackstone vs. New Residential Investment |
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.
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