Correlation Between Zijin Mining and Marks
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Marks 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 Marks 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 Marks and Spencer, you can compare the effects of market volatilities on Zijin Mining and Marks 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 Marks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Marks.
Diversification Opportunities for Zijin Mining and Marks
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Marks is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Marks and Spencer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marks and Spencer 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 Marks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marks and Spencer has no effect on the direction of Zijin Mining i.e., Zijin Mining and Marks go up and down completely randomly.
Pair Corralation between Zijin Mining and Marks
Assuming the 90 days horizon Zijin Mining is expected to generate 1.44 times less return on investment than Marks. In addition to that, Zijin Mining is 1.75 times more volatile than Marks and Spencer. It trades about 0.03 of its total potential returns per unit of risk. Marks and Spencer is currently generating about 0.08 per unit of volatility. If you would invest 307.00 in Marks and Spencer on October 25, 2024 and sell it today you would earn a total of 99.00 from holding Marks and Spencer or generate 32.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Marks and Spencer
Performance |
| Timeline |
| Zijin Mining Group |
| Marks and Spencer |
Zijin Mining and Marks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Marks
The main advantage of trading using opposite Zijin Mining and Marks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Marks 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 Marks will offset losses from the drop in Marks' long position.| Zijin Mining vs. Salesforce | Zijin Mining vs. FLOW TRADERS LTD | Zijin Mining vs. Hyatt Hotels | Zijin Mining vs. TRADELINK ELECTRON |
| Marks vs. IMAGIN MEDICAL INC | Marks vs. WESANA HEALTH HOLD | Marks vs. OPKO HEALTH | Marks vs. Advanced Medical Solutions |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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