Correlation Between Zijin Mining and Casio Computer
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Casio Computer 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 Casio Computer 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 Casio Computer CoLtd, you can compare the effects of market volatilities on Zijin Mining and Casio Computer 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 Casio Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Casio Computer.
Diversification Opportunities for Zijin Mining and Casio Computer
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Casio is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Casio Computer CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casio Computer CoLtd 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 Casio Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casio Computer CoLtd has no effect on the direction of Zijin Mining i.e., Zijin Mining and Casio Computer go up and down completely randomly.
Pair Corralation between Zijin Mining and Casio Computer
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Casio Computer. In addition to that, Zijin Mining is 1.94 times more volatile than Casio Computer CoLtd. It trades about -0.09 of its total potential returns per unit of risk. Casio Computer CoLtd is currently generating about 0.23 per unit of volatility. If you would invest 674.00 in Casio Computer CoLtd on September 26, 2024 and sell it today you would earn a total of 113.00 from holding Casio Computer CoLtd or generate 16.77% 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. Casio Computer CoLtd
Performance |
| Timeline |
| Zijin Mining Group |
| Casio Computer CoLtd |
Zijin Mining and Casio Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Casio Computer
The main advantage of trading using opposite Zijin Mining and Casio Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Casio Computer 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 Casio Computer will offset losses from the drop in Casio Computer's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Vale SA |
| Casio Computer vs. Chuangs China Investments | Casio Computer vs. REGAL ASIAN INVESTMENTS | Casio Computer vs. Virtus Investment Partners | Casio Computer 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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