Correlation Between Zijin Mining and Swiss Life
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Swiss Life 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 Swiss Life 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 Swiss Life Holding, you can compare the effects of market volatilities on Zijin Mining and Swiss Life 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 Swiss Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Swiss Life.
Diversification Opportunities for Zijin Mining and Swiss Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zijin and Swiss is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Swiss Life Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Life Holding 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 Swiss Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Life Holding has no effect on the direction of Zijin Mining i.e., Zijin Mining and Swiss Life go up and down completely randomly.
Pair Corralation between Zijin Mining and Swiss Life
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.45 times more return on investment than Swiss Life. However, Zijin Mining is 1.45 times more volatile than Swiss Life Holding. It trades about 0.07 of its potential returns per unit of risk. Swiss Life Holding is currently generating about 0.06 per unit of risk. If you would invest 82.00 in Zijin Mining Group on September 12, 2024 and sell it today you would earn a total of 104.00 from holding Zijin Mining Group or generate 126.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Swiss Life Holding
Performance |
| Timeline |
| Zijin Mining Group |
| Swiss Life Holding |
Zijin Mining and Swiss Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Swiss Life
The main advantage of trading using opposite Zijin Mining and Swiss Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Swiss Life 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 Swiss Life will offset losses from the drop in Swiss Life'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 |
| Swiss Life vs. Carsales | Swiss Life vs. Zijin Mining Group | Swiss Life vs. MINCO SILVER | Swiss Life vs. GRIFFIN MINING LTD |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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