Correlation Between Zijin Mining and Codexis
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Codexis 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 Codexis 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 Codexis, you can compare the effects of market volatilities on Zijin Mining and Codexis 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 Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Codexis.
Diversification Opportunities for Zijin Mining and Codexis
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Codexis is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis 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 Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of Zijin Mining i.e., Zijin Mining and Codexis go up and down completely randomly.
Pair Corralation between Zijin Mining and Codexis
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Codexis. But the pink sheet apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.07 times less risky than Codexis. The pink sheet trades about -0.17 of its potential returns per unit of risk. The Codexis is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Codexis on September 2, 2024 and sell it today you would earn a total of 108.00 from holding Codexis or generate 30.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Codexis
Performance |
| Timeline |
| Zijin Mining Group |
| Codexis |
Zijin Mining and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Codexis
The main advantage of trading using opposite Zijin Mining and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Codexis 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 Codexis will offset losses from the drop in Codexis' 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 |
| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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