Correlation Between Mitsubishi Gas and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Mitsubishi Gas 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 Mitsubishi Gas and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsubishi Gas Chemical and Zijin Mining Group, you can compare the effects of market volatilities on Mitsubishi Gas 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 Mitsubishi Gas with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi Gas and Zijin Mining.
Diversification Opportunities for Mitsubishi Gas and Zijin Mining
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mitsubishi and Zijin is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi Gas Chemical 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 Mitsubishi Gas 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 Mitsubishi Gas Chemical 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 Mitsubishi Gas i.e., Mitsubishi Gas and Zijin Mining go up and down completely randomly.
Pair Corralation between Mitsubishi Gas and Zijin Mining
Assuming the 90 days trading horizon Mitsubishi Gas is expected to generate 1.14 times less return on investment than Zijin Mining. But when comparing it to its historical volatility, Mitsubishi Gas Chemical is 2.18 times less risky than Zijin Mining. It trades about 0.07 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 169.00 in Zijin Mining Group on November 4, 2024 and sell it today you would earn a total of 15.00 from holding Zijin Mining Group or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsubishi Gas Chemical vs. Zijin Mining Group
Performance |
| Timeline |
| Mitsubishi Gas Chemical |
| Zijin Mining Group |
Mitsubishi Gas and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsubishi Gas and Zijin Mining
The main advantage of trading using opposite Mitsubishi Gas and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi Gas 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.| Mitsubishi Gas vs. Avanos Medical | Mitsubishi Gas vs. Elmos Semiconductor SE | Mitsubishi Gas vs. CompuGroup Medical SE | Mitsubishi Gas vs. MagnaChip Semiconductor Corp |
| Zijin Mining vs. Ribbon Communications | Zijin Mining vs. WillScot Mobile Mini | Zijin Mining vs. FUYO GENERAL LEASE | Zijin Mining vs. SOCKET MOBILE NEW |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |