Correlation Between MARKET VECTR and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both MARKET VECTR 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 MARKET VECTR and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MARKET VECTR RETAIL and Zijin Mining Group, you can compare the effects of market volatilities on MARKET VECTR 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 MARKET VECTR with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARKET VECTR and Zijin Mining.
Diversification Opportunities for MARKET VECTR and Zijin Mining
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MARKET and Zijin is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding MARKET VECTR RETAIL 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 MARKET VECTR 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 MARKET VECTR RETAIL 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 MARKET VECTR i.e., MARKET VECTR and Zijin Mining go up and down completely randomly.
Pair Corralation between MARKET VECTR and Zijin Mining
Assuming the 90 days trading horizon MARKET VECTR is expected to generate 2.48 times less return on investment than Zijin Mining. But when comparing it to its historical volatility, MARKET VECTR RETAIL is 4.15 times less risky than Zijin Mining. It trades about 0.12 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 115.00 in Zijin Mining Group on November 3, 2024 and sell it today you would earn a total of 66.00 from holding Zijin Mining Group or generate 57.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
MARKET VECTR RETAIL vs. Zijin Mining Group
Performance |
| Timeline |
| MARKET VECTR RETAIL |
| Zijin Mining Group |
MARKET VECTR and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MARKET VECTR and Zijin Mining
The main advantage of trading using opposite MARKET VECTR and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARKET VECTR 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.| MARKET VECTR vs. Diamyd Medical AB | MARKET VECTR vs. PEPTONIC MEDICAL | MARKET VECTR vs. Gladstone Investment | MARKET VECTR vs. Clearside Biomedical |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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