Correlation Between Original Sixteen and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Original Sixteen 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 Original Sixteen and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Original Sixteen To and Zijin Mining Group, you can compare the effects of market volatilities on Original Sixteen 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 Original Sixteen with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Original Sixteen and Zijin Mining.
Diversification Opportunities for Original Sixteen and Zijin Mining
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Original and Zijin is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Original Sixteen To 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 Original Sixteen 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 Original Sixteen To 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 Original Sixteen i.e., Original Sixteen and Zijin Mining go up and down completely randomly.
Pair Corralation between Original Sixteen and Zijin Mining
If you would invest 121.00 in Zijin Mining Group on September 14, 2024 and sell it today you would earn a total of 79.00 from holding Zijin Mining Group or generate 65.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.41% |
| Values | Daily Returns |
Original Sixteen To vs. Zijin Mining Group
Performance |
| Timeline |
| Original Sixteen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Zijin Mining Group |
Original Sixteen and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Original Sixteen and Zijin Mining
The main advantage of trading using opposite Original Sixteen and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Original Sixteen 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.| Original Sixteen vs. Zijin Mining Group | Original Sixteen vs. Asure Software | Original Sixteen vs. Agnico Eagle Mines | Original Sixteen vs. Mangazeya Mining |
| Zijin Mining vs. Torex Gold Resources | Zijin Mining vs. Wesdome Gold Mines | Zijin Mining vs. Northern Star Resources | Zijin Mining vs. Regis Resources |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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