Correlation Between Zijin Mining and MOLSON RS
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and MOLSON RS 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 MOLSON RS 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 MOLSON RS BEVERAGE, you can compare the effects of market volatilities on Zijin Mining and MOLSON RS 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 MOLSON RS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and MOLSON RS.
Diversification Opportunities for Zijin Mining and MOLSON RS
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zijin and MOLSON is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and MOLSON RS BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS BEVERAGE 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 MOLSON RS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOLSON RS BEVERAGE has no effect on the direction of Zijin Mining i.e., Zijin Mining and MOLSON RS go up and down completely randomly.
Pair Corralation between Zijin Mining and MOLSON RS
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.94 times more return on investment than MOLSON RS. However, Zijin Mining is 1.94 times more volatile than MOLSON RS BEVERAGE. It trades about 0.01 of its potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about -0.13 per unit of risk. If you would invest 179.00 in Zijin Mining Group on October 26, 2024 and sell it today you would lose (1.00) from holding Zijin Mining Group or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. MOLSON RS BEVERAGE
Performance |
| Timeline |
| Zijin Mining Group |
| MOLSON RS BEVERAGE |
Zijin Mining and MOLSON RS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and MOLSON RS
The main advantage of trading using opposite Zijin Mining and MOLSON RS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, MOLSON RS 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 MOLSON RS will offset losses from the drop in MOLSON RS's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Vale SA |
| MOLSON RS vs. Stag Industrial | MOLSON RS vs. Perseus Mining Limited | MOLSON RS vs. Forsys Metals Corp | MOLSON RS vs. Zijin Mining Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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