Correlation Between Zijin Mining and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and NTG Nordic 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 NTG Nordic 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 NTG Nordic Transport, you can compare the effects of market volatilities on Zijin Mining and NTG Nordic 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 NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and NTG Nordic.
Diversification Opportunities for Zijin Mining and NTG Nordic
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zijin and NTG is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport 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 NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of Zijin Mining i.e., Zijin Mining and NTG Nordic go up and down completely randomly.
Pair Corralation between Zijin Mining and NTG Nordic
Assuming the 90 days horizon Zijin Mining Group is expected to generate 2.41 times more return on investment than NTG Nordic. However, Zijin Mining is 2.41 times more volatile than NTG Nordic Transport. It trades about 0.12 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about -0.1 per unit of risk. If you would invest 171.00 in Zijin Mining Group on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Zijin Mining Group or generate 7.6% 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. NTG Nordic Transport
Performance |
| Timeline |
| Zijin Mining Group |
| NTG Nordic Transport |
Zijin Mining and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and NTG Nordic
The main advantage of trading using opposite Zijin Mining and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Vale SA | Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. SIVERS SEMICONDUCTORS AB |
| NTG Nordic vs. Superior Plus Corp | NTG Nordic vs. SIVERS SEMICONDUCTORS AB | NTG Nordic vs. NorAm Drilling AS | NTG Nordic vs. Norsk Hydro ASA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |