Correlation Between Zijin Mining and Dacian Gold
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Dacian Gold 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 Dacian Gold 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 Dacian Gold Limited, you can compare the effects of market volatilities on Zijin Mining and Dacian Gold 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 Dacian Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Dacian Gold.
Diversification Opportunities for Zijin Mining and Dacian Gold
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Dacian is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Dacian Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dacian Gold Limited 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 Dacian Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dacian Gold Limited has no effect on the direction of Zijin Mining i.e., Zijin Mining and Dacian Gold go up and down completely randomly.
Pair Corralation between Zijin Mining and Dacian Gold
If you would invest 206.00 in Zijin Mining Group on September 1, 2024 and sell it today you would lose (23.00) from holding Zijin Mining Group or give up 11.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.81% |
| Values | Daily Returns |
Zijin Mining Group vs. Dacian Gold Limited
Performance |
| Timeline |
| Zijin Mining Group |
| Dacian Gold Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zijin Mining and Dacian Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Dacian Gold
The main advantage of trading using opposite Zijin Mining and Dacian Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Dacian Gold 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 Dacian Gold will offset losses from the drop in Dacian Gold's long position.| Zijin Mining vs. Aurion Resources | Zijin Mining vs. Rio2 Limited | Zijin Mining vs. Palamina Corp | Zijin Mining vs. BTU Metals Corp |
| Dacian Gold vs. Minnova Corp | Dacian Gold vs. Argo Gold | Dacian Gold vs. Advance Gold Corp | Dacian Gold vs. Blue Star Gold |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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