Correlation Between MUTUIONLINE and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both MUTUIONLINE 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 MUTUIONLINE and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MUTUIONLINE and Zijin Mining Group, you can compare the effects of market volatilities on MUTUIONLINE 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 MUTUIONLINE with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of MUTUIONLINE and Zijin Mining.
Diversification Opportunities for MUTUIONLINE and Zijin Mining
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MUTUIONLINE and Zijin is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding MUTUIONLINE 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 MUTUIONLINE 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 MUTUIONLINE 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 MUTUIONLINE i.e., MUTUIONLINE and Zijin Mining go up and down completely randomly.
Pair Corralation between MUTUIONLINE and Zijin Mining
Assuming the 90 days trading horizon MUTUIONLINE is expected to under-perform the Zijin Mining. But the stock apears to be less risky and, when comparing its historical volatility, MUTUIONLINE is 2.31 times less risky than Zijin Mining. The stock trades about -0.31 of its potential returns per unit of risk. The Zijin Mining Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 167.00 in Zijin Mining Group on October 22, 2024 and sell it today you would earn a total of 15.00 from holding Zijin Mining Group or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MUTUIONLINE vs. Zijin Mining Group
Performance |
| Timeline |
| MUTUIONLINE |
| Zijin Mining Group |
MUTUIONLINE and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MUTUIONLINE and Zijin Mining
The main advantage of trading using opposite MUTUIONLINE and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MUTUIONLINE 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.| MUTUIONLINE vs. Sun Life Financial | MUTUIONLINE vs. New Residential Investment | MUTUIONLINE vs. MGIC INVESTMENT | MUTUIONLINE vs. CHRYSALIS INVESTMENTS LTD |
| Zijin Mining vs. BOS BETTER ONLINE | Zijin Mining vs. SALESFORCE INC CDR | Zijin Mining vs. Algonquin Power Utilities | Zijin Mining vs. MUTUIONLINE |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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