Correlation Between Zijin Mining and RYMAN HEALTHCAR
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and RYMAN HEALTHCAR 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 RYMAN HEALTHCAR 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 RYMAN HEALTHCAR, you can compare the effects of market volatilities on Zijin Mining and RYMAN HEALTHCAR 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 RYMAN HEALTHCAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and RYMAN HEALTHCAR.
Diversification Opportunities for Zijin Mining and RYMAN HEALTHCAR
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and RYMAN is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and RYMAN HEALTHCAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RYMAN HEALTHCAR 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 RYMAN HEALTHCAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RYMAN HEALTHCAR has no effect on the direction of Zijin Mining i.e., Zijin Mining and RYMAN HEALTHCAR go up and down completely randomly.
Pair Corralation between Zijin Mining and RYMAN HEALTHCAR
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the RYMAN HEALTHCAR. In addition to that, Zijin Mining is 1.97 times more volatile than RYMAN HEALTHCAR. It trades about -0.08 of its total potential returns per unit of risk. RYMAN HEALTHCAR is currently generating about 0.18 per unit of volatility. If you would invest 239.00 in RYMAN HEALTHCAR on October 11, 2024 and sell it today you would earn a total of 14.00 from holding RYMAN HEALTHCAR or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Zijin Mining Group vs. RYMAN HEALTHCAR
Performance |
| Timeline |
| Zijin Mining Group |
| RYMAN HEALTHCAR |
Zijin Mining and RYMAN HEALTHCAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and RYMAN HEALTHCAR
The main advantage of trading using opposite Zijin Mining and RYMAN HEALTHCAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, RYMAN HEALTHCAR 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 RYMAN HEALTHCAR will offset losses from the drop in RYMAN HEALTHCAR's long position.| Zijin Mining vs. Playa Hotels Resorts | Zijin Mining vs. Gaming and Leisure | Zijin Mining vs. Wyndham Hotels Resorts | Zijin Mining vs. Pebblebrook Hotel Trust |
| RYMAN HEALTHCAR vs. Geely Automobile Holdings | RYMAN HEALTHCAR vs. Charter Communications | RYMAN HEALTHCAR vs. SINGAPORE AIRLINES | RYMAN HEALTHCAR vs. International Consolidated Airlines |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |