Correlation Between Zijin Mining and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Gol Intelligent 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 Gol Intelligent 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 Gol Intelligent Airlines, you can compare the effects of market volatilities on Zijin Mining and Gol Intelligent 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 Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Gol Intelligent.
Diversification Opportunities for Zijin Mining and Gol Intelligent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zijin and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Gol Intelligent Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gol Intelligent Airlines 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 Gol Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gol Intelligent Airlines has no effect on the direction of Zijin Mining i.e., Zijin Mining and Gol Intelligent go up and down completely randomly.
Pair Corralation between Zijin Mining and Gol Intelligent
If you would invest 173.00 in Zijin Mining Group on October 17, 2024 and sell it today you would earn a total of 21.00 from holding Zijin Mining Group or generate 12.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Gol Intelligent Airlines
Performance |
| Timeline |
| Zijin Mining Group |
| Gol Intelligent Airlines |
Zijin Mining and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Gol Intelligent
The main advantage of trading using opposite Zijin Mining and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Gol Intelligent 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 Gol Intelligent will offset losses from the drop in Gol Intelligent's long position.| Zijin Mining vs. ARISTOCRAT LEISURE | Zijin Mining vs. PLAYSTUDIOS A DL 0001 | Zijin Mining vs. COLUMBIA SPORTSWEAR | Zijin Mining vs. PLAYTIKA HOLDING DL 01 |
| Gol Intelligent vs. GOODYEAR T RUBBER | Gol Intelligent vs. THRACE PLASTICS | Gol Intelligent vs. MCEWEN MINING INC | Gol Intelligent vs. Zijin Mining Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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