Correlation Between Kinross Gold and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Kinross 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 Kinross 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 Kinross Gold and Zijin Mining Group, you can compare the effects of market volatilities on Kinross 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 Kinross Gold with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinross Gold and Zijin Mining.
Diversification Opportunities for Kinross Gold and Zijin Mining
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinross and Zijin is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kinross 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 Kinross 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 Kinross 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 Kinross Gold i.e., Kinross Gold and Zijin Mining go up and down completely randomly.
Pair Corralation between Kinross Gold and Zijin Mining
Considering the 90-day investment horizon Kinross Gold is expected to generate 0.71 times more return on investment than Zijin Mining. However, Kinross Gold is 1.41 times less risky than Zijin Mining. It trades about 0.1 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.04 per unit of risk. If you would invest 402.00 in Kinross Gold on November 2, 2024 and sell it today you would earn a total of 731.00 from holding Kinross Gold or generate 181.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 86.03% |
| Values | Daily Returns |
Kinross Gold vs. Zijin Mining Group
Performance |
| Timeline |
| Kinross Gold |
| Zijin Mining Group |
Kinross Gold and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinross Gold and Zijin Mining
The main advantage of trading using opposite Kinross Gold and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross 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.| Kinross Gold vs. Pan American Silver | Kinross Gold vs. Newmont Goldcorp Corp | Kinross Gold vs. Wheaton Precious Metals | Kinross Gold vs. Franco Nevada |
| Zijin Mining vs. AngloGold Ashanti plc | Zijin Mining vs. Harmony Gold Mining | Zijin Mining vs. Eldorado Gold Corp | Zijin Mining vs. Kinross Gold |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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