Correlation Between Zijin Mining and Advanced Info
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Advanced Info 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 Advanced Info 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 Advanced Info Service, you can compare the effects of market volatilities on Zijin Mining and Advanced Info 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 Advanced Info. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Advanced Info.
Diversification Opportunities for Zijin Mining and Advanced Info
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and Advanced is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Advanced Info Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Info Service 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 Advanced Info. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Info Service has no effect on the direction of Zijin Mining i.e., Zijin Mining and Advanced Info go up and down completely randomly.
Pair Corralation between Zijin Mining and Advanced Info
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.95 times more return on investment than Advanced Info. However, Zijin Mining is 1.95 times more volatile than Advanced Info Service. It trades about 0.07 of its potential returns per unit of risk. Advanced Info Service is currently generating about 0.09 per unit of risk. If you would invest 116.00 in Zijin Mining Group on September 12, 2024 and sell it today you would earn a total of 70.00 from holding Zijin Mining Group or generate 60.34% 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. Advanced Info Service
Performance |
| Timeline |
| Zijin Mining Group |
| Advanced Info Service |
Zijin Mining and Advanced Info Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Advanced Info
The main advantage of trading using opposite Zijin Mining and Advanced Info positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Advanced Info 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 Advanced Info will offset losses from the drop in Advanced Info'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 |
| Advanced Info vs. Zijin Mining Group | Advanced Info vs. DeVry Education Group | Advanced Info vs. EEDUCATION ALBERT AB | Advanced Info vs. CARSALESCOM |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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