Correlation Between Zijin Mining and KORE Mining
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and KORE Mining 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 KORE Mining 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 KORE Mining, you can compare the effects of market volatilities on Zijin Mining and KORE Mining 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 KORE Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and KORE Mining.
Diversification Opportunities for Zijin Mining and KORE Mining
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and KORE is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and KORE Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Mining 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 KORE Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Mining has no effect on the direction of Zijin Mining i.e., Zijin Mining and KORE Mining go up and down completely randomly.
Pair Corralation between Zijin Mining and KORE Mining
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.5 times more return on investment than KORE Mining. However, Zijin Mining Group is 2.01 times less risky than KORE Mining. It trades about 0.06 of its potential returns per unit of risk. KORE Mining is currently generating about 0.01 per unit of risk. If you would invest 131.00 in Zijin Mining Group on August 25, 2024 and sell it today you would earn a total of 62.00 from holding Zijin Mining Group or generate 47.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.45% |
| Values | Daily Returns |
Zijin Mining Group vs. KORE Mining
Performance |
| Timeline |
| Zijin Mining Group |
| KORE Mining |
Zijin Mining and KORE Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and KORE Mining
The main advantage of trading using opposite Zijin Mining and KORE Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, KORE Mining 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 KORE Mining will offset losses from the drop in KORE Mining's long position.| Zijin Mining vs. Aurion Resources | Zijin Mining vs. Liberty Gold Corp | Zijin Mining vs. Rio2 Limited | Zijin Mining vs. Orezone Gold Corp |
| KORE Mining vs. Aurion Resources | KORE Mining vs. Liberty Gold Corp | KORE Mining vs. Rio2 Limited | KORE Mining vs. Orezone Gold Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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