Correlation Between Franklin Street and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Franklin Street and Zijin Mining 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 Franklin Street and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Street Properties and Zijin Mining Group, you can compare the effects of market volatilities on Franklin Street and Zijin Mining 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 Franklin Street with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Street and Zijin Mining.
Diversification Opportunities for Franklin Street and Zijin Mining
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Zijin is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Street Properties and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group and Franklin Street 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 Franklin Street Properties are associated (or correlated) with Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of Franklin Street i.e., Franklin Street and Zijin Mining go up and down completely randomly.
Pair Corralation between Franklin Street and Zijin Mining
Considering the 90-day investment horizon Franklin Street Properties is expected to generate 0.83 times more return on investment than Zijin Mining. However, Franklin Street Properties is 1.21 times less risky than Zijin Mining. It trades about 0.06 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.0 per unit of risk. If you would invest 176.00 in Franklin Street Properties on September 3, 2024 and sell it today you would earn a total of 15.00 from holding Franklin Street Properties or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Street Properties vs. Zijin Mining Group
Performance |
| Timeline |
| Franklin Street Prop |
| Zijin Mining Group |
Franklin Street and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Street and Zijin Mining
The main advantage of trading using opposite Franklin Street and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Street position performs unexpectedly, Zijin Mining 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 Zijin Mining will offset losses from the drop in Zijin Mining's long position.| Franklin Street vs. Equity Commonwealth | Franklin Street vs. Cousins Properties Incorporated | Franklin Street vs. Creative Media Community | Franklin Street vs. Highwoods Properties |
| Zijin Mining vs. Harmony Gold Mining | Zijin Mining vs. SPACE | Zijin Mining vs. T Rowe Price | Zijin Mining vs. Ampleforth |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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