Correlation Between Zijin Mining and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Sixt Leasing 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 Sixt Leasing 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 Sixt Leasing SE, you can compare the effects of market volatilities on Zijin Mining and Sixt Leasing 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 Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Sixt Leasing.
Diversification Opportunities for Zijin Mining and Sixt Leasing
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zijin and Sixt is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Sixt Leasing SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt Leasing SE 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 Sixt Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt Leasing SE has no effect on the direction of Zijin Mining i.e., Zijin Mining and Sixt Leasing go up and down completely randomly.
Pair Corralation between Zijin Mining and Sixt Leasing
Assuming the 90 days horizon Zijin Mining Group is expected to generate 2.42 times more return on investment than Sixt Leasing. However, Zijin Mining is 2.42 times more volatile than Sixt Leasing SE. It trades about 0.04 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.1 per unit of risk. If you would invest 169.00 in Zijin Mining Group on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Zijin Mining Group or generate 4.73% 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. Sixt Leasing SE
Performance |
| Timeline |
| Zijin Mining Group |
| Sixt Leasing SE |
Zijin Mining and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Sixt Leasing
The main advantage of trading using opposite Zijin Mining and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Sixt Leasing 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 Sixt Leasing will offset losses from the drop in Sixt Leasing's long position.| Zijin Mining vs. ARISTOCRAT LEISURE | Zijin Mining vs. EAT WELL INVESTMENT | Zijin Mining vs. ePlay Digital | Zijin Mining vs. PennantPark Investment |
| Sixt Leasing vs. Harmony Gold Mining | Sixt Leasing vs. Motorcar Parts of | Sixt Leasing vs. Zijin Mining Group | Sixt Leasing vs. Jacquet Metal Service |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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