Correlation Between Zijin Mining and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and PARKEN Sport 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 PARKEN Sport 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 PARKEN Sport Entertainment, you can compare the effects of market volatilities on Zijin Mining and PARKEN Sport 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 PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and PARKEN Sport.
Diversification Opportunities for Zijin Mining and PARKEN Sport
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and PARKEN is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and PARKEN Sport Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKEN Sport Enterta 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 PARKEN Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKEN Sport Enterta has no effect on the direction of Zijin Mining i.e., Zijin Mining and PARKEN Sport go up and down completely randomly.
Pair Corralation between Zijin Mining and PARKEN Sport
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the PARKEN Sport. In addition to that, Zijin Mining is 2.37 times more volatile than PARKEN Sport Entertainment. It trades about -0.07 of its total potential returns per unit of risk. PARKEN Sport Entertainment is currently generating about 0.01 per unit of volatility. If you would invest 1,615 in PARKEN Sport Entertainment on August 29, 2024 and sell it today you would earn a total of 0.00 from holding PARKEN Sport Entertainment or generate 0.0% 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. PARKEN Sport Entertainment
Performance |
| Timeline |
| Zijin Mining Group |
| PARKEN Sport Enterta |
Zijin Mining and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and PARKEN Sport
The main advantage of trading using opposite Zijin Mining and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, PARKEN Sport 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 PARKEN Sport will offset losses from the drop in PARKEN Sport's long position.| Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. NMI Holdings | Zijin Mining vs. Origin Agritech | Zijin Mining vs. SIVERS SEMICONDUCTORS AB |
| PARKEN Sport vs. The Walt Disney | PARKEN Sport vs. Superior Plus Corp | PARKEN Sport vs. NMI Holdings | PARKEN Sport vs. Origin Agritech |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |