Correlation Between Zijin Mining and BOS Better
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and BOS Better 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 BOS Better 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 BOS Better Online, you can compare the effects of market volatilities on Zijin Mining and BOS Better 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 BOS Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and BOS Better.
Diversification Opportunities for Zijin Mining and BOS Better
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and BOS is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and BOS Better Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS Better Online 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 BOS Better. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS Better Online has no effect on the direction of Zijin Mining i.e., Zijin Mining and BOS Better go up and down completely randomly.
Pair Corralation between Zijin Mining and BOS Better
Assuming the 90 days horizon Zijin Mining Group is expected to generate 3.71 times more return on investment than BOS Better. However, Zijin Mining is 3.71 times more volatile than BOS Better Online. It trades about 0.05 of its potential returns per unit of risk. BOS Better Online is currently generating about 0.05 per unit of risk. If you would invest 139.00 in Zijin Mining Group on August 27, 2024 and sell it today you would earn a total of 54.00 from holding Zijin Mining Group or generate 38.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.73% |
| Values | Daily Returns |
Zijin Mining Group vs. BOS Better Online
Performance |
| Timeline |
| Zijin Mining Group |
| BOS Better Online |
Zijin Mining and BOS Better Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and BOS Better
The main advantage of trading using opposite Zijin Mining and BOS Better positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, BOS Better 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 BOS Better will offset losses from the drop in BOS Better's long position.| Zijin Mining vs. Aurion Resources | Zijin Mining vs. Liberty Gold Corp | Zijin Mining vs. Orezone Gold Corp | Zijin Mining vs. Radisson Mining Resources |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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