Correlation Between Zijin Mining and Ross Stores
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Ross Stores 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 Ross Stores 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 Ross Stores, you can compare the effects of market volatilities on Zijin Mining and Ross Stores 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 Ross Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Ross Stores.
Diversification Opportunities for Zijin Mining and Ross Stores
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Ross is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Ross Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ross Stores 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 Ross Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ross Stores has no effect on the direction of Zijin Mining i.e., Zijin Mining and Ross Stores go up and down completely randomly.
Pair Corralation between Zijin Mining and Ross Stores
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Ross Stores. In addition to that, Zijin Mining is 1.38 times more volatile than Ross Stores. It trades about -0.11 of its total potential returns per unit of risk. Ross Stores is currently generating about 0.24 per unit of volatility. If you would invest 12,828 in Ross Stores on August 30, 2024 and sell it today you would earn a total of 1,814 from holding Ross Stores or generate 14.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zijin Mining Group vs. Ross Stores
Performance |
| Timeline |
| Zijin Mining Group |
| Ross Stores |
Zijin Mining and Ross Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Ross Stores
The main advantage of trading using opposite Zijin Mining and Ross Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Ross Stores 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 Ross Stores will offset losses from the drop in Ross Stores' 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 |
| Ross Stores vs. Consolidated Communications Holdings | Ross Stores vs. COLUMBIA SPORTSWEAR | Ross Stores vs. Internet Thailand PCL | Ross Stores vs. DICKS Sporting Goods |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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