Correlation Between Zijin Mining and CANEX Metals
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and CANEX Metals 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 CANEX Metals 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 CANEX Metals, you can compare the effects of market volatilities on Zijin Mining and CANEX Metals 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 CANEX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and CANEX Metals.
Diversification Opportunities for Zijin Mining and CANEX Metals
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and CANEX is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and CANEX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CANEX Metals 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 CANEX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CANEX Metals has no effect on the direction of Zijin Mining i.e., Zijin Mining and CANEX Metals go up and down completely randomly.
Pair Corralation between Zijin Mining and CANEX Metals
Assuming the 90 days horizon Zijin Mining Group is expected to generate 11.69 times more return on investment than CANEX Metals. However, Zijin Mining is 11.69 times more volatile than CANEX Metals. It trades about 0.11 of its potential returns per unit of risk. CANEX Metals is currently generating about -0.22 per unit of risk. If you would invest 180.00 in Zijin Mining Group on November 3, 2024 and sell it today you would earn a total of 13.00 from holding Zijin Mining Group or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Zijin Mining Group vs. CANEX Metals
Performance |
| Timeline |
| Zijin Mining Group |
| CANEX Metals |
Zijin Mining and CANEX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and CANEX Metals
The main advantage of trading using opposite Zijin Mining and CANEX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, CANEX Metals 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 CANEX Metals will offset losses from the drop in CANEX Metals' 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 |
| CANEX Metals vs. Antioquia Gold | CANEX Metals vs. Radisson Mining Resources | CANEX Metals vs. Asante Gold | CANEX Metals vs. Baru 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |