Correlation Between Zijin Mining and CDN IMPERIAL
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and CDN IMPERIAL 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 CDN IMPERIAL 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 CDN IMPERIAL BANK, you can compare the effects of market volatilities on Zijin Mining and CDN IMPERIAL 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 CDN IMPERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and CDN IMPERIAL.
Diversification Opportunities for Zijin Mining and CDN IMPERIAL
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zijin and CDN is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and CDN IMPERIAL BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN IMPERIAL BANK 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 CDN IMPERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN IMPERIAL BANK has no effect on the direction of Zijin Mining i.e., Zijin Mining and CDN IMPERIAL go up and down completely randomly.
Pair Corralation between Zijin Mining and CDN IMPERIAL
Assuming the 90 days horizon Zijin Mining Group is expected to generate 3.76 times more return on investment than CDN IMPERIAL. However, Zijin Mining is 3.76 times more volatile than CDN IMPERIAL BANK. It trades about 0.07 of its potential returns per unit of risk. CDN IMPERIAL BANK is currently generating about 0.17 per unit of risk. If you would invest 168.00 in Zijin Mining Group on October 18, 2024 and sell it today you would earn a total of 26.00 from holding Zijin Mining Group or generate 15.48% 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. CDN IMPERIAL BANK
Performance |
| Timeline |
| Zijin Mining Group |
| CDN IMPERIAL BANK |
Zijin Mining and CDN IMPERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and CDN IMPERIAL
The main advantage of trading using opposite Zijin Mining and CDN IMPERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, CDN IMPERIAL 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 CDN IMPERIAL will offset losses from the drop in CDN IMPERIAL's long position.| Zijin Mining vs. ARISTOCRAT LEISURE | Zijin Mining vs. PLAYSTUDIOS A DL 0001 | Zijin Mining vs. COLUMBIA SPORTSWEAR | Zijin Mining vs. PLAYTIKA HOLDING DL 01 |
| CDN IMPERIAL vs. Harmony Gold Mining | CDN IMPERIAL vs. FIREWEED METALS P | CDN IMPERIAL vs. Zijin Mining Group | CDN IMPERIAL vs. GOODYEAR T RUBBER |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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