Correlation Between Zijin Mining and WT OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and WT OFFSHORE 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 WT OFFSHORE 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 WT OFFSHORE, you can compare the effects of market volatilities on Zijin Mining and WT OFFSHORE 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 WT OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and WT OFFSHORE.
Diversification Opportunities for Zijin Mining and WT OFFSHORE
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and UWV is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and WT OFFSHORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT OFFSHORE 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 WT OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT OFFSHORE has no effect on the direction of Zijin Mining i.e., Zijin Mining and WT OFFSHORE go up and down completely randomly.
Pair Corralation between Zijin Mining and WT OFFSHORE
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.02 times more return on investment than WT OFFSHORE. However, Zijin Mining is 1.02 times more volatile than WT OFFSHORE. It trades about 0.05 of its potential returns per unit of risk. WT OFFSHORE is currently generating about -0.06 per unit of risk. If you would invest 95.00 in Zijin Mining Group on October 27, 2024 and sell it today you would earn a total of 83.00 from holding Zijin Mining Group or generate 87.37% 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. WT OFFSHORE
Performance |
| Timeline |
| Zijin Mining Group |
| WT OFFSHORE |
Zijin Mining and WT OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and WT OFFSHORE
The main advantage of trading using opposite Zijin Mining and WT OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, WT OFFSHORE 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 WT OFFSHORE will offset losses from the drop in WT OFFSHORE's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Vale SA |
| WT OFFSHORE vs. EIDESVIK OFFSHORE NK | WT OFFSHORE vs. Solstad Offshore ASA | WT OFFSHORE vs. GAMING FAC SA | WT OFFSHORE vs. Diamyd Medical AB |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |