Correlation Between Kaiser and Zijin Mining
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By analyzing existing cross correlation between Kaiser Permanente and Zijin Mining Group, you can compare the effects of market volatilities on Kaiser 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 Kaiser with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser and Zijin Mining.
Diversification Opportunities for Kaiser and Zijin Mining
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kaiser and Zijin is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Permanente 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 Kaiser 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 Kaiser Permanente 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 Kaiser i.e., Kaiser and Zijin Mining go up and down completely randomly.
Pair Corralation between Kaiser and Zijin Mining
Assuming the 90 days trading horizon Kaiser Permanente is expected to generate 10.14 times more return on investment than Zijin Mining. However, Kaiser is 10.14 times more volatile than Zijin Mining Group. It trades about 0.08 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.06 per unit of risk. If you would invest 7,432 in Kaiser Permanente on September 3, 2024 and sell it today you would lose (845.00) from holding Kaiser Permanente or give up 11.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.9% |
| Values | Daily Returns |
Kaiser Permanente vs. Zijin Mining Group
Performance |
| Timeline |
| Kaiser Permanente |
| Zijin Mining Group |
Kaiser and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser and Zijin Mining
The main advantage of trading using opposite Kaiser and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser 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.| Kaiser vs. Zijin Mining Group | Kaiser vs. Western Sierra Mining | Kaiser vs. Natural Alternatives International | Kaiser vs. Harmony Gold Mining |
| Zijin Mining vs. Harmony Gold Mining | Zijin Mining vs. SPACE | Zijin Mining vs. T Rowe Price | Zijin Mining vs. Ampleforth |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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