Correlation Between Zijin Mining and Hasbro
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Hasbro 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 Hasbro 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 Hasbro Inc, you can compare the effects of market volatilities on Zijin Mining and Hasbro 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 Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Hasbro.
Diversification Opportunities for Zijin Mining and Hasbro
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Hasbro is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc 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 Hasbro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hasbro Inc has no effect on the direction of Zijin Mining i.e., Zijin Mining and Hasbro go up and down completely randomly.
Pair Corralation between Zijin Mining and Hasbro
Assuming the 90 days horizon Zijin Mining Group is expected to generate 4.5 times more return on investment than Hasbro. However, Zijin Mining is 4.5 times more volatile than Hasbro Inc. It trades about 0.06 of its potential returns per unit of risk. Hasbro Inc is currently generating about 0.03 per unit of risk. If you would invest 90.00 in Zijin Mining Group on September 3, 2024 and sell it today you would earn a total of 101.00 from holding Zijin Mining Group or generate 112.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.71% |
| Values | Daily Returns |
Zijin Mining Group vs. Hasbro Inc
Performance |
| Timeline |
| Zijin Mining Group |
| Hasbro Inc |
Zijin Mining and Hasbro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Hasbro
The main advantage of trading using opposite Zijin Mining and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Hasbro 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 Hasbro will offset losses from the drop in Hasbro's long position.| Zijin Mining vs. Harmony Gold Mining | Zijin Mining vs. SPACE | Zijin Mining vs. T Rowe Price | Zijin Mining vs. Ampleforth |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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