Correlation Between Zijin Mining and Blue Star
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Blue Star 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 Blue Star 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 Blue Star Gold, you can compare the effects of market volatilities on Zijin Mining and Blue Star 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 Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Blue Star.
Diversification Opportunities for Zijin Mining and Blue Star
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Blue is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Blue Star Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star Gold 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 Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Gold has no effect on the direction of Zijin Mining i.e., Zijin Mining and Blue Star go up and down completely randomly.
Pair Corralation between Zijin Mining and Blue Star
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.85 times more return on investment than Blue Star. However, Zijin Mining Group is 1.17 times less risky than Blue Star. It trades about 0.06 of its potential returns per unit of risk. Blue Star Gold is currently generating about -0.13 per unit of risk. If you would invest 130.00 in Zijin Mining Group on August 29, 2024 and sell it today you would earn a total of 66.00 from holding Zijin Mining Group or generate 50.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.34% |
| Values | Daily Returns |
Zijin Mining Group vs. Blue Star Gold
Performance |
| Timeline |
| Zijin Mining Group |
| Blue Star Gold |
Zijin Mining and Blue Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Blue Star
The main advantage of trading using opposite Zijin Mining and Blue Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Blue Star 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 Blue Star will offset losses from the drop in Blue Star's long position.| Zijin Mining vs. Vertiv Holdings Co | Zijin Mining vs. Nasdaq Inc | Zijin Mining vs. McDonalds | Zijin Mining vs. Walmart |
| Blue Star vs. Argo Gold | Blue Star vs. Minnova Corp | Blue Star vs. Angkor Resources Corp | Blue Star vs. Advance United Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Positions Ratings 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 | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |