Correlation Between Zijin Mining and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and ASURE SOFTWARE 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 ASURE SOFTWARE 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 ASURE SOFTWARE, you can compare the effects of market volatilities on Zijin Mining and ASURE SOFTWARE 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 ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and ASURE SOFTWARE.
Diversification Opportunities for Zijin Mining and ASURE SOFTWARE
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zijin and ASURE is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE 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 ASURE SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASURE SOFTWARE has no effect on the direction of Zijin Mining i.e., Zijin Mining and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between Zijin Mining and ASURE SOFTWARE
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.03 times more return on investment than ASURE SOFTWARE. However, Zijin Mining is 1.03 times more volatile than ASURE SOFTWARE. It trades about 0.05 of its potential returns per unit of risk. ASURE SOFTWARE is currently generating about 0.03 per unit of risk. If you would invest 100.00 in Zijin Mining Group on October 12, 2024 and sell it today you would earn a total of 77.00 from holding Zijin Mining Group or generate 77.0% 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. ASURE SOFTWARE
Performance |
| Timeline |
| Zijin Mining Group |
| ASURE SOFTWARE |
Zijin Mining and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and ASURE SOFTWARE
The main advantage of trading using opposite Zijin Mining and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, ASURE SOFTWARE 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 ASURE SOFTWARE will offset losses from the drop in ASURE SOFTWARE's long position.| Zijin Mining vs. SBI Insurance Group | Zijin Mining vs. ALBIS LEASING AG | Zijin Mining vs. Reinsurance Group of | Zijin Mining vs. Safety Insurance Group |
| ASURE SOFTWARE vs. GRIFFIN MINING LTD | ASURE SOFTWARE vs. Zijin Mining Group | ASURE SOFTWARE vs. Tyson Foods | ASURE SOFTWARE vs. CN MODERN DAIRY |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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