Correlation Between Revival Gold and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Revival Gold 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 Revival Gold and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Revival Gold and Zijin Mining Group, you can compare the effects of market volatilities on Revival Gold 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 Revival Gold with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Revival Gold and Zijin Mining.
Diversification Opportunities for Revival Gold and Zijin Mining
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Revival and Zijin is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Revival Gold 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 Revival Gold 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 Revival Gold 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 Revival Gold i.e., Revival Gold and Zijin Mining go up and down completely randomly.
Pair Corralation between Revival Gold and Zijin Mining
Assuming the 90 days horizon Revival Gold is expected to generate 5.02 times less return on investment than Zijin Mining. In addition to that, Revival Gold is 1.41 times more volatile than Zijin Mining Group. It trades about 0.02 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about 0.15 per unit of volatility. If you would invest 184.00 in Zijin Mining Group on October 20, 2024 and sell it today you would earn a total of 16.00 from holding Zijin Mining Group or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Revival Gold vs. Zijin Mining Group
Performance |
| Timeline |
| Revival Gold |
| Zijin Mining Group |
Revival Gold and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Revival Gold and Zijin Mining
The main advantage of trading using opposite Revival Gold and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Revival Gold 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.| Revival Gold vs. Westward Gold | Revival Gold vs. Heliostar Metals | Revival Gold vs. Cabral Gold | Revival Gold vs. Cassiar Gold Corp |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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