Correlation Between Zijin Mining and FORWARD AIR
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and FORWARD AIR 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 FORWARD AIR 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 FORWARD AIR P, you can compare the effects of market volatilities on Zijin Mining and FORWARD AIR 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 FORWARD AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and FORWARD AIR.
Diversification Opportunities for Zijin Mining and FORWARD AIR
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and FORWARD is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and FORWARD AIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORWARD AIR P 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 FORWARD AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORWARD AIR P has no effect on the direction of Zijin Mining i.e., Zijin Mining and FORWARD AIR go up and down completely randomly.
Pair Corralation between Zijin Mining and FORWARD AIR
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.9 times more return on investment than FORWARD AIR. However, Zijin Mining Group is 1.11 times less risky than FORWARD AIR. It trades about 0.08 of its potential returns per unit of risk. FORWARD AIR P is currently generating about -0.29 per unit of risk. If you would invest 178.00 in Zijin Mining Group on November 27, 2024 and sell it today you would earn a total of 6.00 from holding Zijin Mining Group or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. FORWARD AIR P
Performance |
| Timeline |
| Zijin Mining Group |
| FORWARD AIR P |
Zijin Mining and FORWARD AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and FORWARD AIR
The main advantage of trading using opposite Zijin Mining and FORWARD AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, FORWARD AIR 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 FORWARD AIR will offset losses from the drop in FORWARD AIR's long position.| Zijin Mining vs. MELIA HOTELS | Zijin Mining vs. Singapore Telecommunications Limited | Zijin Mining vs. Playa Hotels Resorts | Zijin Mining vs. Sunstone Hotel Investors |
| FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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