Correlation Between Zijin Mining and Triumph
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Triumph 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 Triumph 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 Triumph Group, you can compare the effects of market volatilities on Zijin Mining and Triumph 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 Triumph. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Triumph.
Diversification Opportunities for Zijin Mining and Triumph
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and Triumph is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Triumph Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Group 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 Triumph. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Group has no effect on the direction of Zijin Mining i.e., Zijin Mining and Triumph go up and down completely randomly.
Pair Corralation between Zijin Mining and Triumph
If you would invest 189.00 in Zijin Mining Group on September 15, 2024 and sell it today you would earn a total of 11.00 from holding Zijin Mining Group or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Zijin Mining Group vs. Triumph Group
Performance |
| Timeline |
| Zijin Mining Group |
| Triumph Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zijin Mining and Triumph Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Triumph
The main advantage of trading using opposite Zijin Mining and Triumph positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Triumph 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 Triumph will offset losses from the drop in Triumph's long position.| Zijin Mining vs. Revival Gold | Zijin Mining vs. Galiano Gold | Zijin Mining vs. US Gold Corp | Zijin Mining vs. HUMANA INC |
| Triumph vs. Evolution Mining | Triumph vs. CVW CleanTech | Triumph vs. Zijin Mining Group | Triumph vs. Summit Materials |
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 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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