Correlation Between Zijin Mining and HEALTHSTREAM (HL5SG)
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM, you can compare the effects of market volatilities on Zijin Mining and HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and HEALTHSTREAM (HL5SG).
Diversification Opportunities for Zijin Mining and HEALTHSTREAM (HL5SG)
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zijin and HEALTHSTREAM is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and HEALTHSTREAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTHSTREAM (HL5SG) has no effect on the direction of Zijin Mining i.e., Zijin Mining and HEALTHSTREAM (HL5SG) go up and down completely randomly.
Pair Corralation between Zijin Mining and HEALTHSTREAM (HL5SG)
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.82 times more return on investment than HEALTHSTREAM (HL5SG). However, Zijin Mining is 1.82 times more volatile than HEALTHSTREAM. It trades about 0.05 of its potential returns per unit of risk. HEALTHSTREAM is currently generating about 0.05 per unit of risk. If you would invest 100.00 in Zijin Mining Group on October 13, 2024 and sell it today you would earn a total of 82.00 from holding Zijin Mining Group or generate 82.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Zijin Mining Group vs. HEALTHSTREAM
Performance |
| Timeline |
| Zijin Mining Group |
| HEALTHSTREAM (HL5SG) |
Zijin Mining and HEALTHSTREAM (HL5SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and HEALTHSTREAM (HL5SG)
The main advantage of trading using opposite Zijin Mining and HEALTHSTREAM (HL5SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG) will offset losses from the drop in HEALTHSTREAM (HL5SG)'s long position.| Zijin Mining vs. INDO RAMA SYNTHETIC | Zijin Mining vs. Columbia Sportswear | Zijin Mining vs. TRI CHEMICAL LABORATINC | Zijin Mining vs. PLAYMATES TOYS |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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