Correlation Between Zijin Mining and 1911 Gold
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and 1911 Gold 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 1911 Gold 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 1911 Gold Corp, you can compare the effects of market volatilities on Zijin Mining and 1911 Gold 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 1911 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and 1911 Gold.
Diversification Opportunities for Zijin Mining and 1911 Gold
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and 1911 is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and 1911 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1911 Gold Corp 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 1911 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1911 Gold Corp has no effect on the direction of Zijin Mining i.e., Zijin Mining and 1911 Gold go up and down completely randomly.
Pair Corralation between Zijin Mining and 1911 Gold
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the 1911 Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 3.78 times less risky than 1911 Gold. The pink sheet trades about -0.2 of its potential returns per unit of risk. The 1911 Gold Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 12.00 in 1911 Gold Corp on October 9, 2024 and sell it today you would lose (1.00) from holding 1911 Gold Corp or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. 1911 Gold Corp
Performance |
| Timeline |
| Zijin Mining Group |
| 1911 Gold Corp |
Zijin Mining and 1911 Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and 1911 Gold
The main advantage of trading using opposite Zijin Mining and 1911 Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, 1911 Gold 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 1911 Gold will offset losses from the drop in 1911 Gold's long position.| Zijin Mining vs. Newmont Goldcorp Corp | Zijin Mining vs. Agnico Eagle Mines | Zijin Mining vs. Barrick Gold Corp | Zijin Mining vs. Wheaton Precious Metals |
| 1911 Gold vs. Newmont Goldcorp Corp | 1911 Gold vs. Zijin Mining Group | 1911 Gold vs. Agnico Eagle Mines | 1911 Gold vs. Barrick 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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