Correlation Between Zijin Mining and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Vienna Insurance 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 Vienna Insurance 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 Vienna Insurance Group, you can compare the effects of market volatilities on Zijin Mining and Vienna Insurance 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 Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Vienna Insurance.
Diversification Opportunities for Zijin Mining and Vienna Insurance
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zijin and Vienna is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance 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 Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of Zijin Mining i.e., Zijin Mining and Vienna Insurance go up and down completely randomly.
Pair Corralation between Zijin Mining and Vienna Insurance
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Vienna Insurance. In addition to that, Zijin Mining is 4.24 times more volatile than Vienna Insurance Group. It trades about -0.05 of its total potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.26 per unit of volatility. If you would invest 2,955 in Vienna Insurance Group on October 11, 2024 and sell it today you would earn a total of 110.00 from holding Vienna Insurance Group or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Vienna Insurance Group
Performance |
| Timeline |
| Zijin Mining Group |
| Vienna Insurance |
Zijin Mining and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Vienna Insurance
The main advantage of trading using opposite Zijin Mining and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance's long position.| Zijin Mining vs. Playa Hotels Resorts | Zijin Mining vs. Gaming and Leisure | Zijin Mining vs. Wyndham Hotels Resorts | Zijin Mining vs. Pebblebrook Hotel Trust |
| Vienna Insurance vs. Tyson Foods | Vienna Insurance vs. United Natural Foods | Vienna Insurance vs. PLANT VEDA FOODS | Vienna Insurance vs. UNIDOC HEALTH P |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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