Correlation Between Zijin Mining and Kaltura
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Kaltura 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 Kaltura 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 Kaltura, you can compare the effects of market volatilities on Zijin Mining and Kaltura 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 Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Kaltura.
Diversification Opportunities for Zijin Mining and Kaltura
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Kaltura is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura 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 Kaltura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaltura has no effect on the direction of Zijin Mining i.e., Zijin Mining and Kaltura go up and down completely randomly.
Pair Corralation between Zijin Mining and Kaltura
Assuming the 90 days horizon Zijin Mining Group is expected to generate 2.5 times more return on investment than Kaltura. However, Zijin Mining is 2.5 times more volatile than Kaltura. It trades about 0.06 of its potential returns per unit of risk. Kaltura 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 Against |
| Strength | Insignificant |
| Accuracy | 90.71% |
| Values | Daily Returns |
Zijin Mining Group vs. Kaltura
Performance |
| Timeline |
| Zijin Mining Group |
| Kaltura |
Zijin Mining and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Kaltura
The main advantage of trading using opposite Zijin Mining and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Kaltura 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 Kaltura will offset losses from the drop in Kaltura's long position.| Zijin Mining vs. Harmony Gold Mining | Zijin Mining vs. SPACE | Zijin Mining vs. T Rowe Price | Zijin Mining vs. Ampleforth |
| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
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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