Correlation Between Zijin Mining and Atec
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Atec 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 Atec 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 Atec Inc, you can compare the effects of market volatilities on Zijin Mining and Atec 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 Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Atec.
Diversification Opportunities for Zijin Mining and Atec
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Atec is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Atec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec Inc 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 Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec Inc has no effect on the direction of Zijin Mining i.e., Zijin Mining and Atec go up and down completely randomly.
Pair Corralation between Zijin Mining and Atec
Assuming the 90 days horizon Zijin Mining is expected to generate 68.67 times less return on investment than Atec. In addition to that, Zijin Mining is 18.78 times more volatile than Atec Inc. It trades about 0.0 of its total potential returns per unit of risk. Atec Inc is currently generating about 0.09 per unit of volatility. If you would invest 2,100 in Atec Inc on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Atec Inc or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
Zijin Mining Group vs. Atec Inc
Performance |
| Timeline |
| Zijin Mining Group |
| Atec Inc |
Zijin Mining and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Atec
The main advantage of trading using opposite Zijin Mining and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec's long position.| Zijin Mining vs. Aurion Resources | Zijin Mining vs. Rio2 Limited | Zijin Mining vs. Palamina Corp | Zijin Mining vs. BTU Metals Corp |
| Atec vs. GEN Restaurant Group, | Atec vs. Yum Brands | Atec vs. The Cheesecake Factory | Atec vs. Doubledown Interactive Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |