Correlation Between Zijin Mining and Herman Miller
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Herman Miller 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 Herman Miller 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 Herman Miller, you can compare the effects of market volatilities on Zijin Mining and Herman Miller 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 Herman Miller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Herman Miller.
Diversification Opportunities for Zijin Mining and Herman Miller
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Herman is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Herman Miller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herman Miller 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 Herman Miller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Herman Miller has no effect on the direction of Zijin Mining i.e., Zijin Mining and Herman Miller go up and down completely randomly.
Pair Corralation between Zijin Mining and Herman Miller
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.62 times more return on investment than Herman Miller. However, Zijin Mining is 1.62 times more volatile than Herman Miller. It trades about 0.0 of its potential returns per unit of risk. Herman Miller is currently generating about -0.26 per unit of risk. If you would invest 178.00 in Zijin Mining Group on January 10, 2025 and sell it today you would lose (7.00) from holding Zijin Mining Group or give up 3.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zijin Mining Group vs. Herman Miller
Performance |
| Timeline |
| Zijin Mining Group |
| Herman Miller |
Zijin Mining and Herman Miller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Herman Miller
The main advantage of trading using opposite Zijin Mining and Herman Miller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Herman Miller 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 Herman Miller will offset losses from the drop in Herman Miller's long position.| Zijin Mining vs. Marie Brizard Wine | Zijin Mining vs. GRIFFIN MINING LTD | Zijin Mining vs. Jacquet Metal Service | Zijin Mining vs. Playa Hotels Resorts |
| Herman Miller vs. Universal Health Realty | Herman Miller vs. Eurasia Mining Plc | Herman Miller vs. NORDHEALTH AS NK | Herman Miller vs. MAG SILVER |
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 CEOs Directory module to screen CEOs from public companies around the world.
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