Correlation Between Zijin Mining and TIMES CHINA
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and TIMES CHINA 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 TIMES CHINA 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 TIMES CHINA HLDGS, you can compare the effects of market volatilities on Zijin Mining and TIMES CHINA 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 TIMES CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and TIMES CHINA.
Diversification Opportunities for Zijin Mining and TIMES CHINA
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and TIMES is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and TIMES CHINA HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIMES CHINA HLDGS 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 TIMES CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIMES CHINA HLDGS has no effect on the direction of Zijin Mining i.e., Zijin Mining and TIMES CHINA go up and down completely randomly.
Pair Corralation between Zijin Mining and TIMES CHINA
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.71 times more return on investment than TIMES CHINA. However, Zijin Mining Group is 1.4 times less risky than TIMES CHINA. It trades about 0.18 of its potential returns per unit of risk. TIMES CHINA HLDGS is currently generating about -0.18 per unit of risk. If you would invest 167.00 in Zijin Mining Group on October 22, 2024 and sell it today you would earn a total of 15.00 from holding Zijin Mining Group or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. TIMES CHINA HLDGS
Performance |
| Timeline |
| Zijin Mining Group |
| TIMES CHINA HLDGS |
Zijin Mining and TIMES CHINA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and TIMES CHINA
The main advantage of trading using opposite Zijin Mining and TIMES CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, TIMES CHINA 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 TIMES CHINA will offset losses from the drop in TIMES CHINA's long position.| Zijin Mining vs. BOS BETTER ONLINE | Zijin Mining vs. SALESFORCE INC CDR | Zijin Mining vs. Algonquin Power Utilities | Zijin Mining vs. MUTUIONLINE |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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