Correlation Between Kaltura and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Kaltura 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 Kaltura and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaltura and Zijin Mining Group, you can compare the effects of market volatilities on Kaltura 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 Kaltura with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaltura and Zijin Mining.
Diversification Opportunities for Kaltura and Zijin Mining
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kaltura and Zijin is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kaltura 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 Kaltura 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 Kaltura 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 Kaltura i.e., Kaltura and Zijin Mining go up and down completely randomly.
Pair Corralation between Kaltura and Zijin Mining
Given the investment horizon of 90 days Kaltura is expected to generate 5.52 times less return on investment than Zijin Mining. But when comparing it to its historical volatility, Kaltura is 2.5 times less risky than Zijin Mining. It trades about 0.03 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 90.00 in Zijin Mining Group on September 3, 2024 and sell it today you would earn a total of 101.00 from holding Zijin Mining Group or generate 112.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.71% |
| Values | Daily Returns |
Kaltura vs. Zijin Mining Group
Performance |
| Timeline |
| Kaltura |
| Zijin Mining Group |
Kaltura and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaltura and Zijin Mining
The main advantage of trading using opposite Kaltura and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaltura 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.| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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