Correlation Between Zijin Mining and COSMOSTEEL HLDGS
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS, you can compare the effects of market volatilities on Zijin Mining and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and COSMOSTEEL HLDGS.
Diversification Opportunities for Zijin Mining and COSMOSTEEL HLDGS
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and COSMOSTEEL is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and COSMOSTEEL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMOSTEEL HLDGS has no effect on the direction of Zijin Mining i.e., Zijin Mining and COSMOSTEEL HLDGS go up and down completely randomly.
Pair Corralation between Zijin Mining and COSMOSTEEL HLDGS
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the COSMOSTEEL HLDGS. In addition to that, Zijin Mining is 1.61 times more volatile than COSMOSTEEL HLDGS. It trades about -0.07 of its total potential returns per unit of risk. COSMOSTEEL HLDGS is currently generating about 0.06 per unit of volatility. If you would invest 6.10 in COSMOSTEEL HLDGS on August 31, 2024 and sell it today you would earn a total of 0.15 from holding COSMOSTEEL HLDGS or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. COSMOSTEEL HLDGS
Performance |
| Timeline |
| Zijin Mining Group |
| COSMOSTEEL HLDGS |
Zijin Mining and COSMOSTEEL HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and COSMOSTEEL HLDGS
The main advantage of trading using opposite Zijin Mining and COSMOSTEEL HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS will offset losses from the drop in COSMOSTEEL HLDGS's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Rio Tinto Group |
| COSMOSTEEL HLDGS vs. Broadcom | COSMOSTEEL HLDGS vs. TITANIUM TRANSPORTGROUP | COSMOSTEEL HLDGS vs. Fukuyama Transporting Co | COSMOSTEEL HLDGS vs. Sims Metal Management |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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