Correlation Between Zijin Mining and Cheesecake Factory
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Cheesecake Factory 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 Cheesecake Factory 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 The Cheesecake Factory, you can compare the effects of market volatilities on Zijin Mining and Cheesecake Factory 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 Cheesecake Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Cheesecake Factory.
Diversification Opportunities for Zijin Mining and Cheesecake Factory
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zijin and Cheesecake is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and The Cheesecake Factory in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Cheesecake Factory 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 Cheesecake Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Cheesecake Factory has no effect on the direction of Zijin Mining i.e., Zijin Mining and Cheesecake Factory go up and down completely randomly.
Pair Corralation between Zijin Mining and Cheesecake Factory
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Cheesecake Factory. In addition to that, Zijin Mining is 1.51 times more volatile than The Cheesecake Factory. It trades about -0.24 of its total potential returns per unit of risk. The Cheesecake Factory is currently generating about 0.22 per unit of volatility. If you would invest 4,596 in The Cheesecake Factory on September 1, 2024 and sell it today you would earn a total of 468.00 from holding The Cheesecake Factory or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. The Cheesecake Factory
Performance |
| Timeline |
| Zijin Mining Group |
| The Cheesecake Factory |
Zijin Mining and Cheesecake Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Cheesecake Factory
The main advantage of trading using opposite Zijin Mining and Cheesecake Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Cheesecake Factory 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 Cheesecake Factory will offset losses from the drop in Cheesecake Factory's long position.| Zijin Mining vs. Aurion Resources | Zijin Mining vs. Rio2 Limited | Zijin Mining vs. Palamina Corp | Zijin Mining vs. BTU Metals Corp |
| Cheesecake Factory vs. The Wendys Co | Cheesecake Factory vs. Shake Shack | Cheesecake Factory vs. Papa Johns International | Cheesecake Factory vs. Darden Restaurants |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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