Correlation Between Zijin Mining and GrafTech International
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and GrafTech International 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 GrafTech International 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 GrafTech International, you can compare the effects of market volatilities on Zijin Mining and GrafTech International 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 GrafTech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and GrafTech International.
Diversification Opportunities for Zijin Mining and GrafTech International
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and GrafTech is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and GrafTech International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrafTech International 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 GrafTech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrafTech International has no effect on the direction of Zijin Mining i.e., Zijin Mining and GrafTech International go up and down completely randomly.
Pair Corralation between Zijin Mining and GrafTech International
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.52 times more return on investment than GrafTech International. However, Zijin Mining Group is 1.91 times less risky than GrafTech International. It trades about 0.08 of its potential returns per unit of risk. GrafTech International is currently generating about 0.04 per unit of risk. If you would invest 111.00 in Zijin Mining Group on November 8, 2024 and sell it today you would earn a total of 75.00 from holding Zijin Mining Group or generate 67.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Zijin Mining Group vs. GrafTech International
Performance |
| Timeline |
| Zijin Mining Group |
| GrafTech International |
Zijin Mining and GrafTech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and GrafTech International
The main advantage of trading using opposite Zijin Mining and GrafTech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, GrafTech International 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 GrafTech International will offset losses from the drop in GrafTech International's long position.| Zijin Mining vs. MCEWEN MINING INC | Zijin Mining vs. VIRGIN WINES UK | Zijin Mining vs. GRIFFIN MINING LTD | Zijin Mining vs. NAKED WINES PLC |
| GrafTech International vs. Vulcan Materials | GrafTech International vs. Marie Brizard Wine | GrafTech International vs. Summit Materials | GrafTech International vs. Sunny Optical Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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