Correlation Between Zijin Mining and Alvotech
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Alvotech 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 Zijin Mining and Alvotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zijin Mining Group and Alvotech, you can compare the effects of market volatilities on Zijin Mining and Alvotech 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 Zijin Mining with a short position of Alvotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Alvotech.
Diversification Opportunities for Zijin Mining and Alvotech
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and Alvotech is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Alvotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech and Zijin Mining 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 Zijin Mining Group are associated (or correlated) with Alvotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alvotech has no effect on the direction of Zijin Mining i.e., Zijin Mining and Alvotech go up and down completely randomly.
Pair Corralation between Zijin Mining and Alvotech
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Alvotech. In addition to that, Zijin Mining is 1.98 times more volatile than Alvotech. It trades about -0.17 of its total potential returns per unit of risk. Alvotech is currently generating about -0.26 per unit of volatility. If you would invest 1,298 in Alvotech on September 1, 2024 and sell it today you would lose (123.00) from holding Alvotech or give up 9.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Alvotech
Performance |
| Timeline |
| Zijin Mining Group |
| Alvotech |
Zijin Mining and Alvotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Alvotech
The main advantage of trading using opposite Zijin Mining and Alvotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Alvotech 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 Alvotech will offset losses from the drop in Alvotech's long position.| Zijin Mining vs. Aurion Resources | Zijin Mining vs. Rio2 Limited | Zijin Mining vs. Palamina Corp | Zijin Mining vs. BTU Metals Corp |
| Alvotech vs. Tff Pharmaceuticals | Alvotech vs. Eliem Therapeutics | Alvotech vs. Inhibrx | Alvotech vs. Enliven Therapeutics |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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