Correlation Between Zijin Mining and Nukkleus
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Nukkleus 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 Nukkleus 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 Nukkleus, you can compare the effects of market volatilities on Zijin Mining and Nukkleus 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 Nukkleus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Nukkleus.
Diversification Opportunities for Zijin Mining and Nukkleus
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Nukkleus is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Nukkleus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nukkleus 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 Nukkleus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nukkleus has no effect on the direction of Zijin Mining i.e., Zijin Mining and Nukkleus go up and down completely randomly.
Pair Corralation between Zijin Mining and Nukkleus
Assuming the 90 days horizon Zijin Mining is expected to generate 1.07 times less return on investment than Nukkleus. But when comparing it to its historical volatility, Zijin Mining Group is 4.5 times less risky than Nukkleus. It trades about 0.07 of its potential returns per unit of risk. Nukkleus is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Nukkleus on September 14, 2024 and sell it today you would lose (17.99) from holding Nukkleus or give up 85.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Zijin Mining Group vs. Nukkleus
Performance |
| Timeline |
| Zijin Mining Group |
| Nukkleus |
Zijin Mining and Nukkleus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Nukkleus
The main advantage of trading using opposite Zijin Mining and Nukkleus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Nukkleus 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 Nukkleus will offset losses from the drop in Nukkleus' 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 |
| Nukkleus vs. Zijin Mining Group | Nukkleus vs. JD Sports Fashion | Nukkleus vs. Stepan Company | Nukkleus vs. Old Dominion Freight |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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