Correlation Between Zijin Mining and CVB Financial
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and CVB Financial 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 CVB Financial 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 CVB Financial Corp, you can compare the effects of market volatilities on Zijin Mining and CVB Financial 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 CVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and CVB Financial.
Diversification Opportunities for Zijin Mining and CVB Financial
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zijin and CVB is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and CVB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVB Financial Corp 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 CVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVB Financial Corp has no effect on the direction of Zijin Mining i.e., Zijin Mining and CVB Financial go up and down completely randomly.
Pair Corralation between Zijin Mining and CVB Financial
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.78 times more return on investment than CVB Financial. However, Zijin Mining is 1.78 times more volatile than CVB Financial Corp. It trades about 0.09 of its potential returns per unit of risk. CVB Financial Corp is currently generating about -0.16 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 7.00 from holding Zijin Mining Group or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. CVB Financial Corp
Performance |
| Timeline |
| Zijin Mining Group |
| CVB Financial Corp |
Zijin Mining and CVB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and CVB Financial
The main advantage of trading using opposite Zijin Mining and CVB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, CVB Financial 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 CVB Financial will offset losses from the drop in CVB Financial's long position.| Zijin Mining vs. Salesforce | Zijin Mining vs. FLOW TRADERS LTD | Zijin Mining vs. Hyatt Hotels | Zijin Mining vs. TRADELINK ELECTRON |
| CVB Financial vs. Mitsubishi Gas Chemical | CVB Financial vs. Zijin Mining Group | CVB Financial vs. ITALIAN WINE BRANDS | CVB Financial vs. De Grey 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |