Correlation Between Zijin Mining and Cleanaway Waste
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Cleanaway Waste 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 Cleanaway Waste 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 Cleanaway Waste Management, you can compare the effects of market volatilities on Zijin Mining and Cleanaway Waste 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 Cleanaway Waste. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Cleanaway Waste.
Diversification Opportunities for Zijin Mining and Cleanaway Waste
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Cleanaway is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Cleanaway Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanaway Waste Mana 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 Cleanaway Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanaway Waste Mana has no effect on the direction of Zijin Mining i.e., Zijin Mining and Cleanaway Waste go up and down completely randomly.
Pair Corralation between Zijin Mining and Cleanaway Waste
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Cleanaway Waste. In addition to that, Zijin Mining is 1.94 times more volatile than Cleanaway Waste Management. It trades about -0.09 of its total potential returns per unit of risk. Cleanaway Waste Management is currently generating about 0.15 per unit of volatility. If you would invest 166.00 in Cleanaway Waste Management on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Cleanaway Waste Management or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Cleanaway Waste Management
Performance |
| Timeline |
| Zijin Mining Group |
| Cleanaway Waste Mana |
Zijin Mining and Cleanaway Waste Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Cleanaway Waste
The main advantage of trading using opposite Zijin Mining and Cleanaway Waste positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Cleanaway Waste 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 Cleanaway Waste will offset losses from the drop in Cleanaway Waste's long position.| Zijin Mining vs. ARISTOCRAT LEISURE | Zijin Mining vs. EAT WELL INVESTMENT | Zijin Mining vs. ePlay Digital | Zijin Mining vs. PennantPark Investment |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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