Correlation Between Zijin Mining and Bim Birlesik
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Bim Birlesik 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 Bim Birlesik 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 Bim Birlesik Magazalar, you can compare the effects of market volatilities on Zijin Mining and Bim Birlesik 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 Bim Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Bim Birlesik.
Diversification Opportunities for Zijin Mining and Bim Birlesik
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zijin and Bim is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Bim Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bim Birlesik Magazalar 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 Bim Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bim Birlesik Magazalar has no effect on the direction of Zijin Mining i.e., Zijin Mining and Bim Birlesik go up and down completely randomly.
Pair Corralation between Zijin Mining and Bim Birlesik
If you would invest 980.00 in Bim Birlesik Magazalar on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Bim Birlesik Magazalar or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Bim Birlesik Magazalar
Performance |
| Timeline |
| Zijin Mining Group |
| Bim Birlesik Magazalar |
Zijin Mining and Bim Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Bim Birlesik
The main advantage of trading using opposite Zijin Mining and Bim Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Bim Birlesik 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 Bim Birlesik will offset losses from the drop in Bim Birlesik's long position.| Zijin Mining vs. Aurion Resources | Zijin Mining vs. Rio2 Limited | Zijin Mining vs. Palamina Corp | Zijin Mining vs. BTU Metals Corp |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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