Correlation Between Zijin Mining and Dolphin Entertainment
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Dolphin Entertainment 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 Dolphin Entertainment 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 Dolphin Entertainment, you can compare the effects of market volatilities on Zijin Mining and Dolphin Entertainment 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 Dolphin Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Dolphin Entertainment.
Diversification Opportunities for Zijin Mining and Dolphin Entertainment
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Dolphin is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Dolphin Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Entertainment 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 Dolphin Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Entertainment has no effect on the direction of Zijin Mining i.e., Zijin Mining and Dolphin Entertainment go up and down completely randomly.
Pair Corralation between Zijin Mining and Dolphin Entertainment
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.86 times more return on investment than Dolphin Entertainment. However, Zijin Mining Group is 1.17 times less risky than Dolphin Entertainment. It trades about -0.02 of its potential returns per unit of risk. Dolphin Entertainment is currently generating about -0.07 per unit of risk. If you would invest 199.00 in Zijin Mining Group on August 30, 2024 and sell it today you would lose (16.00) from holding Zijin Mining Group or give up 8.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Dolphin Entertainment
Performance |
| Timeline |
| Zijin Mining Group |
| Dolphin Entertainment |
Zijin Mining and Dolphin Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Dolphin Entertainment
The main advantage of trading using opposite Zijin Mining and Dolphin Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Dolphin Entertainment 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 Dolphin Entertainment will offset losses from the drop in Dolphin Entertainment's 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 |
| Dolphin Entertainment vs. Hall of Fame | Dolphin Entertainment vs. Wisekey International Holding | Dolphin Entertainment vs. Oriental Culture Holding |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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