Correlation Between Hf Foods and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Hf Foods 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 Hf Foods and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hf Foods Group and Zijin Mining Group, you can compare the effects of market volatilities on Hf Foods 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 Hf Foods with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Zijin Mining.
Diversification Opportunities for Hf Foods and Zijin Mining
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HFFG and Zijin is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group 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 Hf Foods 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 Hf Foods Group 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 Hf Foods i.e., Hf Foods and Zijin Mining go up and down completely randomly.
Pair Corralation between Hf Foods and Zijin Mining
Given the investment horizon of 90 days Hf Foods Group is expected to generate 0.59 times more return on investment than Zijin Mining. However, Hf Foods Group is 1.69 times less risky than Zijin Mining. It trades about 0.02 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.21 per unit of risk. If you would invest 352.00 in Hf Foods Group on August 25, 2024 and sell it today you would earn a total of 2.00 from holding Hf Foods Group or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hf Foods Group vs. Zijin Mining Group
Performance |
| Timeline |
| Hf Foods Group |
| Zijin Mining Group |
Hf Foods and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and Zijin Mining
The main advantage of trading using opposite Hf Foods and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods 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.| Hf Foods vs. Innovative Food Hldg | Hf Foods vs. G Willi Food International | Hf Foods vs. Calavo Growers | Hf Foods vs. The Chefs Warehouse |
| Zijin Mining vs. Aurion Resources | Zijin Mining vs. Liberty Gold Corp | Zijin Mining vs. Rio2 Limited | Zijin Mining vs. Orezone Gold Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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