Correlation Between Zijin Mining and Franklin Street
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Franklin Street 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 Franklin Street 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 Franklin Street Properties, you can compare the effects of market volatilities on Zijin Mining and Franklin Street 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 Franklin Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Franklin Street.
Diversification Opportunities for Zijin Mining and Franklin Street
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Franklin is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Franklin Street Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Street Prop 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 Franklin Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Street Prop has no effect on the direction of Zijin Mining i.e., Zijin Mining and Franklin Street go up and down completely randomly.
Pair Corralation between Zijin Mining and Franklin Street
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Franklin Street. In addition to that, Zijin Mining is 1.21 times more volatile than Franklin Street Properties. It trades about 0.0 of its total potential returns per unit of risk. Franklin Street Properties is currently generating about 0.06 per unit of volatility. If you would invest 176.00 in Franklin Street Properties on September 3, 2024 and sell it today you would earn a total of 15.00 from holding Franklin Street Properties or generate 8.52% 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. Franklin Street Properties
Performance |
| Timeline |
| Zijin Mining Group |
| Franklin Street Prop |
Zijin Mining and Franklin Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Franklin Street
The main advantage of trading using opposite Zijin Mining and Franklin Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Franklin Street 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 Franklin Street will offset losses from the drop in Franklin Street's long position.| Zijin Mining vs. Harmony Gold Mining | Zijin Mining vs. SPACE | Zijin Mining vs. T Rowe Price | Zijin Mining vs. Ampleforth |
| Franklin Street vs. Equity Commonwealth | Franklin Street vs. Cousins Properties Incorporated | Franklin Street vs. Creative Media Community | Franklin Street vs. Highwoods Properties |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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