Correlation Between Zijin Mining and MALACHITE RESOURCES
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and MALACHITE RESOURCES 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 MALACHITE RESOURCES 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 MALACHITE RESOURCES, you can compare the effects of market volatilities on Zijin Mining and MALACHITE RESOURCES 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 MALACHITE RESOURCES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and MALACHITE RESOURCES.
Diversification Opportunities for Zijin Mining and MALACHITE RESOURCES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zijin and MALACHITE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and MALACHITE RESOURCES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MALACHITE RESOURCES 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 MALACHITE RESOURCES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MALACHITE RESOURCES has no effect on the direction of Zijin Mining i.e., Zijin Mining and MALACHITE RESOURCES go up and down completely randomly.
Pair Corralation between Zijin Mining and MALACHITE RESOURCES
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.82 times more return on investment than MALACHITE RESOURCES. However, Zijin Mining Group is 1.22 times less risky than MALACHITE RESOURCES. It trades about 0.01 of its potential returns per unit of risk. MALACHITE RESOURCES is currently generating about -0.03 per unit of risk. If you would invest 182.00 in Zijin Mining Group on September 1, 2024 and sell it today you would lose (5.00) from holding Zijin Mining Group or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. MALACHITE RESOURCES
Performance |
| Timeline |
| Zijin Mining Group |
| MALACHITE RESOURCES |
Zijin Mining and MALACHITE RESOURCES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and MALACHITE RESOURCES
The main advantage of trading using opposite Zijin Mining and MALACHITE RESOURCES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, MALACHITE RESOURCES 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 MALACHITE RESOURCES will offset losses from the drop in MALACHITE RESOURCES's long position.| Zijin Mining vs. Astral Foods Limited | Zijin Mining vs. GALENA MINING LTD | Zijin Mining vs. CN MODERN DAIRY | Zijin Mining vs. TYSON FOODS A |
| MALACHITE RESOURCES vs. NORWEGIAN AIR SHUT | MALACHITE RESOURCES vs. DELTA AIR LINES | MALACHITE RESOURCES vs. Bumrungrad Hospital Public | MALACHITE RESOURCES vs. DiamondRock Hospitality |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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