Correlation Between Zijin Mining and SAFETY MEDICAL
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and SAFETY MEDICAL 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 SAFETY MEDICAL 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 SAFETY MEDICAL PROD, you can compare the effects of market volatilities on Zijin Mining and SAFETY MEDICAL 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 SAFETY MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and SAFETY MEDICAL.
Diversification Opportunities for Zijin Mining and SAFETY MEDICAL
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zijin and SAFETY is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and SAFETY MEDICAL PROD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAFETY MEDICAL PROD 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 SAFETY MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAFETY MEDICAL PROD has no effect on the direction of Zijin Mining i.e., Zijin Mining and SAFETY MEDICAL go up and down completely randomly.
Pair Corralation between Zijin Mining and SAFETY MEDICAL
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.07 times more return on investment than SAFETY MEDICAL. However, Zijin Mining is 1.07 times more volatile than SAFETY MEDICAL PROD. It trades about -0.05 of its potential returns per unit of risk. SAFETY MEDICAL PROD is currently generating about -0.25 per unit of risk. If you would invest 188.00 in Zijin Mining Group on September 1, 2024 and sell it today you would lose (11.00) from holding Zijin Mining Group or give up 5.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. SAFETY MEDICAL PROD
Performance |
| Timeline |
| Zijin Mining Group |
| SAFETY MEDICAL PROD |
Zijin Mining and SAFETY MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and SAFETY MEDICAL
The main advantage of trading using opposite Zijin Mining and SAFETY MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, SAFETY MEDICAL 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 SAFETY MEDICAL will offset losses from the drop in SAFETY MEDICAL's long position.| Zijin Mining vs. Astral Foods Limited | Zijin Mining vs. GALENA MINING LTD | Zijin Mining vs. CN MODERN DAIRY | Zijin Mining vs. TYSON FOODS A |
| SAFETY MEDICAL vs. MOLSON RS BEVERAGE | SAFETY MEDICAL vs. Molson Coors Beverage | SAFETY MEDICAL vs. ADRIATIC METALS LS 013355 | SAFETY MEDICAL vs. United Insurance Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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