Correlation Between Zijin Mining and STRAYER EDUCATION
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and STRAYER EDUCATION 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 STRAYER EDUCATION 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 STRAYER EDUCATION, you can compare the effects of market volatilities on Zijin Mining and STRAYER EDUCATION 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 STRAYER EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and STRAYER EDUCATION.
Diversification Opportunities for Zijin Mining and STRAYER EDUCATION
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and STRAYER is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and STRAYER EDUCATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAYER EDUCATION 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 STRAYER EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRAYER EDUCATION has no effect on the direction of Zijin Mining i.e., Zijin Mining and STRAYER EDUCATION go up and down completely randomly.
Pair Corralation between Zijin Mining and STRAYER EDUCATION
Assuming the 90 days horizon Zijin Mining is expected to generate 1.01 times less return on investment than STRAYER EDUCATION. In addition to that, Zijin Mining is 2.51 times more volatile than STRAYER EDUCATION. It trades about 0.04 of its total potential returns per unit of risk. STRAYER EDUCATION is currently generating about 0.09 per unit of volatility. If you would invest 8,589 in STRAYER EDUCATION on September 3, 2024 and sell it today you would earn a total of 811.00 from holding STRAYER EDUCATION or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. STRAYER EDUCATION
Performance |
| Timeline |
| Zijin Mining Group |
| STRAYER EDUCATION |
Zijin Mining and STRAYER EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and STRAYER EDUCATION
The main advantage of trading using opposite Zijin Mining and STRAYER EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, STRAYER EDUCATION 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 STRAYER EDUCATION will offset losses from the drop in STRAYER EDUCATION's long position.| Zijin Mining vs. ARISTOCRAT LEISURE | Zijin Mining vs. EAT WELL INVESTMENT | Zijin Mining vs. ePlay Digital | Zijin Mining vs. PennantPark Investment |
| STRAYER EDUCATION vs. United Rentals | STRAYER EDUCATION vs. Caseys General Stores | STRAYER EDUCATION vs. Zijin Mining Group | STRAYER EDUCATION vs. Costco Wholesale Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |