Correlation Between PICKN PAY and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both PICKN PAY 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 PICKN PAY and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICKN PAY STORES and Zijin Mining Group, you can compare the effects of market volatilities on PICKN PAY 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 PICKN PAY with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and Zijin Mining.
Diversification Opportunities for PICKN PAY and Zijin Mining
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PICKN and Zijin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES 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 PICKN PAY 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 PICKN PAY STORES 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 PICKN PAY i.e., PICKN PAY and Zijin Mining go up and down completely randomly.
Pair Corralation between PICKN PAY and Zijin Mining
Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 1.09 times more return on investment than Zijin Mining. However, PICKN PAY is 1.09 times more volatile than Zijin Mining Group. It trades about 0.06 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.02 per unit of risk. If you would invest 121.00 in PICKN PAY STORES on August 29, 2024 and sell it today you would earn a total of 30.00 from holding PICKN PAY STORES or generate 24.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PICKN PAY STORES vs. Zijin Mining Group
Performance |
| Timeline |
| PICKN PAY STORES |
| Zijin Mining Group |
PICKN PAY and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and Zijin Mining
The main advantage of trading using opposite PICKN PAY and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY 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.| PICKN PAY vs. Apple Inc | PICKN PAY vs. Apple Inc | PICKN PAY vs. Superior Plus Corp | PICKN PAY vs. SIVERS SEMICONDUCTORS AB |
| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Vale SA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |