Correlation Between Galiano Gold and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Galiano Gold 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 Galiano Gold and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galiano Gold and Zijin Mining Group, you can compare the effects of market volatilities on Galiano Gold 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 Galiano Gold with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galiano Gold and Zijin Mining.
Diversification Opportunities for Galiano Gold and Zijin Mining
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Galiano and Zijin is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Galiano Gold 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 Galiano Gold 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 Galiano Gold 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 Galiano Gold i.e., Galiano Gold and Zijin Mining go up and down completely randomly.
Pair Corralation between Galiano Gold and Zijin Mining
Considering the 90-day investment horizon Galiano Gold is expected to under-perform the Zijin Mining. But the stock apears to be less risky and, when comparing its historical volatility, Galiano Gold is 1.23 times less risky than Zijin Mining. The stock trades about -0.03 of its potential returns per unit of risk. The Zijin Mining Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 197.00 in Zijin Mining Group on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Zijin Mining Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galiano Gold vs. Zijin Mining Group
Performance |
| Timeline |
| Galiano Gold |
| Zijin Mining Group |
Galiano Gold and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galiano Gold and Zijin Mining
The main advantage of trading using opposite Galiano Gold and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galiano Gold 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.| Galiano Gold vs. Avino Silver Gold | Galiano Gold vs. Americas Silver Corp | Galiano Gold vs. Paramount Gold Nevada | Galiano Gold vs. Fury Gold Mines |
| Zijin Mining vs. Revival Gold | Zijin Mining vs. Galiano Gold | Zijin Mining vs. US Gold Corp | Zijin Mining vs. HUMANA INC |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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