Correlation Between Zijin Mining and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and MAGNUM MINING 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 MAGNUM MINING 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 MAGNUM MINING EXP, you can compare the effects of market volatilities on Zijin Mining and MAGNUM MINING 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 MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and MAGNUM MINING.
Diversification Opportunities for Zijin Mining and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zijin and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and MAGNUM MINING EXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGNUM MINING EXP 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 MAGNUM MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGNUM MINING EXP has no effect on the direction of Zijin Mining i.e., Zijin Mining and MAGNUM MINING go up and down completely randomly.
Pair Corralation between Zijin Mining and MAGNUM MINING
If you would invest 121.00 in Zijin Mining Group on August 25, 2024 and sell it today you would earn a total of 62.00 from holding Zijin Mining Group or generate 51.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Zijin Mining Group vs. MAGNUM MINING EXP
Performance |
| Timeline |
| Zijin Mining Group |
| MAGNUM MINING EXP |
Zijin Mining and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and MAGNUM MINING
The main advantage of trading using opposite Zijin Mining and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, MAGNUM MINING 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 MAGNUM MINING will offset losses from the drop in MAGNUM MINING's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. NMI Holdings | Zijin Mining vs. Origin Agritech |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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