Correlation Between Zijin Mining and Bank of New York
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Bank of New York 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 Bank of New York 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 Bank of New, you can compare the effects of market volatilities on Zijin Mining and Bank of New York 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 Bank of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Bank of New York.
Diversification Opportunities for Zijin Mining and Bank of New York
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zijin and Bank is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Bank of New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of New York 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 Bank of New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of New York has no effect on the direction of Zijin Mining i.e., Zijin Mining and Bank of New York go up and down completely randomly.
Pair Corralation between Zijin Mining and Bank of New York
Assuming the 90 days horizon Zijin Mining is expected to generate 5.08 times less return on investment than Bank of New York. In addition to that, Zijin Mining is 3.72 times more volatile than Bank of New. It trades about 0.01 of its total potential returns per unit of risk. Bank of New is currently generating about 0.24 per unit of volatility. If you would invest 5,807 in Bank of New on September 2, 2024 and sell it today you would earn a total of 2,380 from holding Bank of New or generate 40.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Zijin Mining Group vs. Bank of New
Performance |
| Timeline |
| Zijin Mining Group |
| Bank of New York |
Zijin Mining and Bank of New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Bank of New York
The main advantage of trading using opposite Zijin Mining and Bank of New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Bank of New York 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 Bank of New York will offset losses from the drop in Bank of New York's long position.| Zijin Mining vs. Torex Gold Resources | Zijin Mining vs. Wesdome Gold Mines | Zijin Mining vs. Northern Star Resources | Zijin Mining vs. Regis Resources |
| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |