Correlation Between Zijin Mining and Space-Communication

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Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Space-Communication 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 Space-Communication 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 Space Communication, you can compare the effects of market volatilities on Zijin Mining and Space-Communication 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 Space-Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Space-Communication.

Diversification Opportunities for Zijin Mining and Space-Communication

ZijinSpace-CommunicationDiversified AwayZijinSpace-CommunicationDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Zijin and Space-Communication is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Space Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Communication 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 Space-Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Communication has no effect on the direction of Zijin Mining i.e., Zijin Mining and Space-Communication go up and down completely randomly.

Pair Corralation between Zijin Mining and Space-Communication

If you would invest  183.00  in Zijin Mining Group on November 26, 2024 and sell it today you would earn a total of  20.00  from holding Zijin Mining Group or generate 10.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy89.06%
ValuesDaily Returns

Zijin Mining Group  vs.  Space Communication

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-50
JavaScript chart by amCharts 3.21.15ZIJMF SPMMF
       Timeline  
Zijin Mining Group 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Zijin Mining Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Zijin Mining reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.81.851.91.9522.052.12.15
Space Communication 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Space Communication has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Space-Communication is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.20.205

Zijin Mining and Space-Communication Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-11.15-8.35-5.55-2.750.012.85.68.4111.21 0.0050.0100.0150.0200.0250.030
JavaScript chart by amCharts 3.21.15ZIJMF SPMMF
       Returns  

Pair Trading with Zijin Mining and Space-Communication

The main advantage of trading using opposite Zijin Mining and Space-Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Space-Communication 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 Space-Communication will offset losses from the drop in Space-Communication's long position.
The idea behind Zijin Mining Group and Space Communication pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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