Correlation Between Zijin Mining and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and GRIFFIN MINING 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 GRIFFIN MINING 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on Zijin Mining and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and GRIFFIN MINING.
Diversification Opportunities for Zijin Mining and GRIFFIN MINING
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zijin and GRIFFIN is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Zijin Mining i.e., Zijin Mining and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Zijin Mining and GRIFFIN MINING
Assuming the 90 days horizon Zijin Mining is expected to generate 1.12 times less return on investment than GRIFFIN MINING. In addition to that, Zijin Mining is 1.55 times more volatile than GRIFFIN MINING LTD. It trades about 0.05 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.09 per unit of volatility. If you would invest 82.00 in GRIFFIN MINING LTD on October 29, 2024 and sell it today you would earn a total of 90.00 from holding GRIFFIN MINING LTD or generate 109.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Zijin Mining Group |
| GRIFFIN MINING LTD |
Zijin Mining and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and GRIFFIN MINING
The main advantage of trading using opposite Zijin Mining and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Vale SA |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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