Correlation Between Zijin Mining and Monster Beverage
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Monster Beverage 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 Monster Beverage 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 Monster Beverage Corp, you can compare the effects of market volatilities on Zijin Mining and Monster Beverage 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 Monster Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Monster Beverage.
Diversification Opportunities for Zijin Mining and Monster Beverage
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and Monster is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Monster Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monster Beverage Corp 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 Monster Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monster Beverage Corp has no effect on the direction of Zijin Mining i.e., Zijin Mining and Monster Beverage go up and down completely randomly.
Pair Corralation between Zijin Mining and Monster Beverage
Assuming the 90 days horizon Zijin Mining Group is expected to generate 2.28 times more return on investment than Monster Beverage. However, Zijin Mining is 2.28 times more volatile than Monster Beverage Corp. It trades about 0.06 of its potential returns per unit of risk. Monster Beverage Corp is currently generating about 0.01 per unit of risk. If you would invest 87.00 in Zijin Mining Group on August 26, 2024 and sell it today you would earn a total of 96.00 from holding Zijin Mining Group or generate 110.34% 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. Monster Beverage Corp
Performance |
| Timeline |
| Zijin Mining Group |
| Monster Beverage Corp |
Zijin Mining and Monster Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Monster Beverage
The main advantage of trading using opposite Zijin Mining and Monster Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Monster Beverage 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 Monster Beverage will offset losses from the drop in Monster Beverage'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 |
| Monster Beverage vs. Apple Inc | Monster Beverage vs. Apple Inc | Monster Beverage vs. Apple Inc | Monster Beverage vs. Apple Inc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |