Correlation Between Zijin Mining and CHUBB
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By analyzing existing cross correlation between Zijin Mining Group and CHUBB P 6, you can compare the effects of market volatilities on Zijin Mining and CHUBB 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 CHUBB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and CHUBB.
Diversification Opportunities for Zijin Mining and CHUBB
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and CHUBB is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and CHUBB P 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHUBB P 6 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 CHUBB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHUBB P 6 has no effect on the direction of Zijin Mining i.e., Zijin Mining and CHUBB go up and down completely randomly.
Pair Corralation between Zijin Mining and CHUBB
Assuming the 90 days horizon Zijin Mining is expected to generate 17.05 times less return on investment than CHUBB. But when comparing it to its historical volatility, Zijin Mining Group is 11.22 times less risky than CHUBB. It trades about 0.06 of its potential returns per unit of risk. CHUBB P 6 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 10,957 in CHUBB P 6 on September 2, 2024 and sell it today you would earn a total of 331.00 from holding CHUBB P 6 or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 82.44% |
| Values | Daily Returns |
Zijin Mining Group vs. CHUBB P 6
Performance |
| Timeline |
| Zijin Mining Group |
| CHUBB P 6 |
Zijin Mining and CHUBB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and CHUBB
The main advantage of trading using opposite Zijin Mining and CHUBB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, CHUBB 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 CHUBB will offset losses from the drop in CHUBB'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 |
| CHUBB vs. Perseus Mining Limited | CHUBB vs. Definitive Healthcare Corp | CHUBB vs. Mangazeya Mining | CHUBB vs. Zijin Mining Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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