Correlation Between Zijin Mining and ITALIAN WINE
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and ITALIAN WINE 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 ITALIAN WINE 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 ITALIAN WINE BRANDS, you can compare the effects of market volatilities on Zijin Mining and ITALIAN WINE 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 ITALIAN WINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and ITALIAN WINE.
Diversification Opportunities for Zijin Mining and ITALIAN WINE
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and ITALIAN is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and ITALIAN WINE BRANDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITALIAN WINE BRANDS 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 ITALIAN WINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITALIAN WINE BRANDS has no effect on the direction of Zijin Mining i.e., Zijin Mining and ITALIAN WINE go up and down completely randomly.
Pair Corralation between Zijin Mining and ITALIAN WINE
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.99 times more return on investment than ITALIAN WINE. However, Zijin Mining Group is 1.01 times less risky than ITALIAN WINE. It trades about -0.02 of its potential returns per unit of risk. ITALIAN WINE BRANDS is currently generating about -0.16 per unit of risk. If you would invest 181.00 in Zijin Mining Group on October 30, 2024 and sell it today you would lose (3.00) from holding Zijin Mining Group or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. ITALIAN WINE BRANDS
Performance |
| Timeline |
| Zijin Mining Group |
| ITALIAN WINE BRANDS |
Zijin Mining and ITALIAN WINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and ITALIAN WINE
The main advantage of trading using opposite Zijin Mining and ITALIAN WINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, ITALIAN WINE 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 ITALIAN WINE will offset losses from the drop in ITALIAN WINE's long position.| Zijin Mining vs. United Breweries Co | Zijin Mining vs. National Beverage Corp | Zijin Mining vs. Dairy Farm International | Zijin Mining vs. Hanison Construction Holdings |
| ITALIAN WINE vs. United Breweries Co | ITALIAN WINE vs. UNIVERSAL MUSIC GROUP | ITALIAN WINE vs. Highlight Communications AG | ITALIAN WINE vs. Monster Beverage Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |