Correlation Between UNIV HEALTH and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both UNIV HEALTH 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 UNIV HEALTH and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNIV HEALTH SERV B and Zijin Mining Group, you can compare the effects of market volatilities on UNIV HEALTH 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 UNIV HEALTH with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIV HEALTH and Zijin Mining.
Diversification Opportunities for UNIV HEALTH and Zijin Mining
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between UNIV and Zijin is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding UNIV HEALTH SERV B 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 UNIV HEALTH 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 UNIV HEALTH SERV B 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 UNIV HEALTH i.e., UNIV HEALTH and Zijin Mining go up and down completely randomly.
Pair Corralation between UNIV HEALTH and Zijin Mining
Assuming the 90 days trading horizon UNIV HEALTH SERV B is expected to generate 0.6 times more return on investment than Zijin Mining. However, UNIV HEALTH SERV B is 1.66 times less risky than Zijin Mining. It trades about 0.05 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 16,984 in UNIV HEALTH SERV B on September 2, 2024 and sell it today you would earn a total of 2,216 from holding UNIV HEALTH SERV B or generate 13.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIV HEALTH SERV B vs. Zijin Mining Group
Performance |
| Timeline |
| UNIV HEALTH SERV |
| Zijin Mining Group |
UNIV HEALTH and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIV HEALTH and Zijin Mining
The main advantage of trading using opposite UNIV HEALTH and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIV HEALTH 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.| UNIV HEALTH vs. SIVERS SEMICONDUCTORS AB | UNIV HEALTH vs. Darden Restaurants | UNIV HEALTH vs. Reliance Steel Aluminum | UNIV HEALTH vs. Q2M Managementberatung AG |
| Zijin Mining vs. REVO INSURANCE SPA | Zijin Mining vs. WillScot Mobile Mini | Zijin Mining vs. COMINTL BANK ADR1 | Zijin Mining vs. Ribbon Communications |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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