Correlation Between Zijin Mining and SINGAPORE POST
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and SINGAPORE POST 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 SINGAPORE POST 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 SINGAPORE POST, you can compare the effects of market volatilities on Zijin Mining and SINGAPORE POST 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 SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and SINGAPORE POST.
Diversification Opportunities for Zijin Mining and SINGAPORE POST
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zijin and SINGAPORE is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST 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 SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of Zijin Mining i.e., Zijin Mining and SINGAPORE POST go up and down completely randomly.
Pair Corralation between Zijin Mining and SINGAPORE POST
Assuming the 90 days horizon Zijin Mining is expected to generate 1.2 times less return on investment than SINGAPORE POST. In addition to that, Zijin Mining is 2.06 times more volatile than SINGAPORE POST. It trades about 0.12 of its total potential returns per unit of risk. SINGAPORE POST is currently generating about 0.3 per unit of volatility. If you would invest 37.00 in SINGAPORE POST on September 13, 2024 and sell it today you would earn a total of 4.00 from holding SINGAPORE POST or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zijin Mining Group vs. SINGAPORE POST
Performance |
| Timeline |
| Zijin Mining Group |
| SINGAPORE POST |
Zijin Mining and SINGAPORE POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and SINGAPORE POST
The main advantage of trading using opposite Zijin Mining and SINGAPORE POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, SINGAPORE POST 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 SINGAPORE POST will offset losses from the drop in SINGAPORE POST'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 |
| SINGAPORE POST vs. Apple Inc | SINGAPORE POST vs. Apple Inc | SINGAPORE POST vs. Apple Inc | SINGAPORE POST vs. Apple Inc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |