Correlation Between SIEM OFFSHORE and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both SIEM OFFSHORE 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 SIEM OFFSHORE and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIEM OFFSHORE NEW and Zijin Mining Group, you can compare the effects of market volatilities on SIEM OFFSHORE 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 SIEM OFFSHORE with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEM OFFSHORE and Zijin Mining.
Diversification Opportunities for SIEM OFFSHORE and Zijin Mining
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SIEM and Zijin is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding SIEM OFFSHORE NEW 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 SIEM OFFSHORE 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 SIEM OFFSHORE NEW 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 SIEM OFFSHORE i.e., SIEM OFFSHORE and Zijin Mining go up and down completely randomly.
Pair Corralation between SIEM OFFSHORE and Zijin Mining
Assuming the 90 days trading horizon SIEM OFFSHORE is expected to generate 1.7 times less return on investment than Zijin Mining. In addition to that, SIEM OFFSHORE is 1.04 times more volatile than Zijin Mining Group. It trades about 0.03 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about 0.05 per unit of volatility. If you would invest 95.00 in Zijin Mining Group on October 27, 2024 and sell it today you would earn a total of 83.00 from holding Zijin Mining Group or generate 87.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIEM OFFSHORE NEW vs. Zijin Mining Group
Performance |
| Timeline |
| SIEM OFFSHORE NEW |
| Zijin Mining Group |
SIEM OFFSHORE and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIEM OFFSHORE and Zijin Mining
The main advantage of trading using opposite SIEM OFFSHORE and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIEM OFFSHORE 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.| SIEM OFFSHORE vs. MAGNUM MINING EXP | SIEM OFFSHORE vs. Jacquet Metal Service | SIEM OFFSHORE vs. Ringmetall SE | SIEM OFFSHORE vs. THAI BEVERAGE |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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