Correlation Between Zijin Mining and JLF INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and JLF INVESTMENT 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 JLF INVESTMENT 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 JLF INVESTMENT, you can compare the effects of market volatilities on Zijin Mining and JLF INVESTMENT 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 JLF INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and JLF INVESTMENT.
Diversification Opportunities for Zijin Mining and JLF INVESTMENT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zijin and JLF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and JLF INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLF INVESTMENT 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 JLF INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLF INVESTMENT has no effect on the direction of Zijin Mining i.e., Zijin Mining and JLF INVESTMENT go up and down completely randomly.
Pair Corralation between Zijin Mining and JLF INVESTMENT
If you would invest 173.00 in Zijin Mining Group on November 5, 2024 and sell it today you would earn a total of 7.00 from holding Zijin Mining Group or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. JLF INVESTMENT
Performance |
| Timeline |
| Zijin Mining Group |
| JLF INVESTMENT |
Zijin Mining and JLF INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and JLF INVESTMENT
The main advantage of trading using opposite Zijin Mining and JLF INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, JLF INVESTMENT 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 JLF INVESTMENT will offset losses from the drop in JLF INVESTMENT's long position.| Zijin Mining vs. Clearside Biomedical | Zijin Mining vs. Discover Financial Services | Zijin Mining vs. Inspire Medical Systems | Zijin Mining vs. Meta Financial Group |
| JLF INVESTMENT vs. EPSILON HEALTHCARE LTD | JLF INVESTMENT vs. Wenzhou Kangning Hospital | JLF INVESTMENT vs. Universal Health Realty | JLF INVESTMENT vs. ULTRA CLEAN HLDGS |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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