Correlation Between Zijin Mining and Komercn Banka
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Komercn Banka 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 Komercn Banka 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 Komercn banka as, you can compare the effects of market volatilities on Zijin Mining and Komercn Banka 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 Komercn Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Komercn Banka.
Diversification Opportunities for Zijin Mining and Komercn Banka
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zijin and Komercn is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Komercn banka as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercn banka as 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 Komercn Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercn banka as has no effect on the direction of Zijin Mining i.e., Zijin Mining and Komercn Banka go up and down completely randomly.
Pair Corralation between Zijin Mining and Komercn Banka
Assuming the 90 days horizon Zijin Mining Group is expected to generate 2.36 times more return on investment than Komercn Banka. However, Zijin Mining is 2.36 times more volatile than Komercn banka as. It trades about 0.06 of its potential returns per unit of risk. Komercn banka as is currently generating about 0.02 per unit of risk. If you would invest 102.00 in Zijin Mining Group on August 30, 2024 and sell it today you would earn a total of 77.00 from holding Zijin Mining Group or generate 75.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Komercn banka as
Performance |
| Timeline |
| Zijin Mining Group |
| Komercn banka as |
Zijin Mining and Komercn Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Komercn Banka
The main advantage of trading using opposite Zijin Mining and Komercn Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Komercn Banka 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 Komercn Banka will offset losses from the drop in Komercn Banka'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 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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