Correlation Between Zijin Mining and Henry Schein
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Henry Schein 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 Henry Schein 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 Henry Schein, you can compare the effects of market volatilities on Zijin Mining and Henry Schein 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 Henry Schein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Henry Schein.
Diversification Opportunities for Zijin Mining and Henry Schein
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zijin and Henry is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Henry Schein in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henry Schein 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 Henry Schein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henry Schein has no effect on the direction of Zijin Mining i.e., Zijin Mining and Henry Schein go up and down completely randomly.
Pair Corralation between Zijin Mining and Henry Schein
Assuming the 90 days horizon Zijin Mining is expected to generate 1.3 times less return on investment than Henry Schein. In addition to that, Zijin Mining is 2.14 times more volatile than Henry Schein. It trades about 0.03 of its total potential returns per unit of risk. Henry Schein is currently generating about 0.07 per unit of volatility. If you would invest 6,278 in Henry Schein on September 3, 2024 and sell it today you would earn a total of 1,046 from holding Henry Schein or generate 16.66% 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. Henry Schein
Performance |
| Timeline |
| Zijin Mining Group |
| Henry Schein |
Zijin Mining and Henry Schein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Henry Schein
The main advantage of trading using opposite Zijin Mining and Henry Schein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Henry Schein 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 Henry Schein will offset losses from the drop in Henry Schein's long position.| Zijin Mining vs. ARISTOCRAT LEISURE | Zijin Mining vs. EAT WELL INVESTMENT | Zijin Mining vs. ePlay Digital | Zijin Mining vs. PennantPark Investment |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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