Correlation Between Zijin Mining and Tradegate
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Tradegate 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 Tradegate 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 Tradegate AG Wertpapierhandelsbank, you can compare the effects of market volatilities on Zijin Mining and Tradegate 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 Tradegate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Tradegate.
Diversification Opportunities for Zijin Mining and Tradegate
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Tradegate is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Tradegate AG Wertpapierhandels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradegate AG Wertpap 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 Tradegate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradegate AG Wertpap has no effect on the direction of Zijin Mining i.e., Zijin Mining and Tradegate go up and down completely randomly.
Pair Corralation between Zijin Mining and Tradegate
Assuming the 90 days horizon Zijin Mining Group is expected to generate 2.29 times more return on investment than Tradegate. However, Zijin Mining is 2.29 times more volatile than Tradegate AG Wertpapierhandelsbank. It trades about 0.03 of its potential returns per unit of risk. Tradegate AG Wertpapierhandelsbank is currently generating about -0.08 per unit of risk. If you would invest 180.00 in Zijin Mining Group on October 17, 2024 and sell it today you would earn a total of 14.00 from holding Zijin Mining Group or generate 7.78% 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. Tradegate AG Wertpapierhandels
Performance |
| Timeline |
| Zijin Mining Group |
| Tradegate AG Wertpap |
Zijin Mining and Tradegate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Tradegate
The main advantage of trading using opposite Zijin Mining and Tradegate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Tradegate 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 Tradegate will offset losses from the drop in Tradegate's long position.| Zijin Mining vs. ARISTOCRAT LEISURE | Zijin Mining vs. PLAYSTUDIOS A DL 0001 | Zijin Mining vs. COLUMBIA SPORTSWEAR | Zijin Mining vs. PLAYTIKA HOLDING DL 01 |
| Tradegate vs. Zijin Mining Group | Tradegate vs. MCEWEN MINING INC | Tradegate vs. Jacquet Metal Service | Tradegate vs. SWISS WATER DECAFFCOFFEE |
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.
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