Correlation Between Zijin Mining and FAST RETAIL
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and FAST RETAIL 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 FAST RETAIL 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 FAST RETAIL ADR, you can compare the effects of market volatilities on Zijin Mining and FAST RETAIL 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 FAST RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and FAST RETAIL.
Diversification Opportunities for Zijin Mining and FAST RETAIL
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and FAST is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and FAST RETAIL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAIL ADR 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 FAST RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAIL ADR has no effect on the direction of Zijin Mining i.e., Zijin Mining and FAST RETAIL go up and down completely randomly.
Pair Corralation between Zijin Mining and FAST RETAIL
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.56 times more return on investment than FAST RETAIL. However, Zijin Mining is 1.56 times more volatile than FAST RETAIL ADR. It trades about 0.07 of its potential returns per unit of risk. FAST RETAIL ADR is currently generating about 0.06 per unit of risk. If you would invest 115.00 in Zijin Mining Group on August 26, 2024 and sell it today you would earn a total of 66.00 from holding Zijin Mining Group or generate 57.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. FAST RETAIL ADR
Performance |
| Timeline |
| Zijin Mining Group |
| FAST RETAIL ADR |
Zijin Mining and FAST RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and FAST RETAIL
The main advantage of trading using opposite Zijin Mining and FAST RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, FAST RETAIL 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 FAST RETAIL will offset losses from the drop in FAST RETAIL's long position.| Zijin Mining vs. MINCO SILVER | Zijin Mining vs. CENTURIA OFFICE REIT | Zijin Mining vs. Corporate Office Properties | Zijin Mining vs. MCEWEN MINING INC |
| FAST RETAIL vs. CHEMICAL INDUSTRIES | FAST RETAIL vs. TIANDE CHEMICAL | FAST RETAIL vs. Data3 Limited | FAST RETAIL vs. Soken Chemical Engineering |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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