Correlation Between Zijin Mining and Yue Da
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Yue Da 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 Yue Da 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 Yue Da International, you can compare the effects of market volatilities on Zijin Mining and Yue Da 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 Yue Da. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Yue Da.
Diversification Opportunities for Zijin Mining and Yue Da
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zijin and Yue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Yue Da International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yue Da International 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 Yue Da. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yue Da International has no effect on the direction of Zijin Mining i.e., Zijin Mining and Yue Da go up and down completely randomly.
Pair Corralation between Zijin Mining and Yue Da
If you would invest 185.00 in Zijin Mining Group on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Zijin Mining Group or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Yue Da International
Performance |
| Timeline |
| Zijin Mining Group |
| Yue Da International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Zijin Mining and Yue Da Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Yue Da
The main advantage of trading using opposite Zijin Mining and Yue Da positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Yue Da 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 Yue Da will offset losses from the drop in Yue Da's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Vale SA | Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. SIVERS SEMICONDUCTORS AB |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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