Correlation Between Zijin Mining and CeoTronics
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and CeoTronics 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 CeoTronics 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 CeoTronics AG, you can compare the effects of market volatilities on Zijin Mining and CeoTronics 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 CeoTronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and CeoTronics.
Diversification Opportunities for Zijin Mining and CeoTronics
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zijin and CeoTronics is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and CeoTronics AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CeoTronics AG 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 CeoTronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CeoTronics AG has no effect on the direction of Zijin Mining i.e., Zijin Mining and CeoTronics go up and down completely randomly.
Pair Corralation between Zijin Mining and CeoTronics
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the CeoTronics. In addition to that, Zijin Mining is 1.19 times more volatile than CeoTronics AG. It trades about -0.05 of its total potential returns per unit of risk. CeoTronics AG is currently generating about 0.31 per unit of volatility. If you would invest 521.00 in CeoTronics AG on September 1, 2024 and sell it today you would earn a total of 119.00 from holding CeoTronics AG or generate 22.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. CeoTronics AG
Performance |
| Timeline |
| Zijin Mining Group |
| CeoTronics AG |
Zijin Mining and CeoTronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and CeoTronics
The main advantage of trading using opposite Zijin Mining and CeoTronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, CeoTronics 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 CeoTronics will offset losses from the drop in CeoTronics' long position.| Zijin Mining vs. Astral Foods Limited | Zijin Mining vs. GALENA MINING LTD | Zijin Mining vs. CN MODERN DAIRY | Zijin Mining vs. TYSON FOODS A |
| CeoTronics vs. Motorola Solutions | CeoTronics vs. Nokia | CeoTronics vs. ZTE Corporation | CeoTronics vs. Hewlett Packard Enterprise |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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