Correlation Between Zijin Mining and Marchex
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Marchex 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 Marchex 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 Marchex, you can compare the effects of market volatilities on Zijin Mining and Marchex 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 Marchex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Marchex.
Diversification Opportunities for Zijin Mining and Marchex
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zijin and Marchex is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex 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 Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of Zijin Mining i.e., Zijin Mining and Marchex go up and down completely randomly.
Pair Corralation between Zijin Mining and Marchex
Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.39 times more return on investment than Marchex. However, Zijin Mining is 1.39 times more volatile than Marchex. It trades about -0.01 of its potential returns per unit of risk. Marchex is currently generating about -0.04 per unit of risk. If you would invest 194.00 in Zijin Mining Group on December 1, 2024 and sell it today you would lose (2.00) from holding Zijin Mining Group or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Marchex
Performance |
| Timeline |
| Zijin Mining Group |
| Marchex |
Zijin Mining and Marchex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Marchex
The main advantage of trading using opposite Zijin Mining and Marchex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Marchex 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 Marchex will offset losses from the drop in Marchex'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 |
| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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