Correlation Between Zijin Mining and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Zijin Mining and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Dow Jones.
Diversification Opportunities for Zijin Mining and Dow Jones
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zijin and Dow is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Zijin Mining i.e., Zijin Mining and Dow Jones go up and down completely randomly.
Pair Corralation between Zijin Mining and Dow Jones
Assuming the 90 days horizon Zijin Mining Group is expected to generate 5.14 times more return on investment than Dow Jones. However, Zijin Mining is 5.14 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of risk. If you would invest 2,970 in Zijin Mining Group on September 1, 2024 and sell it today you would earn a total of 785.00 from holding Zijin Mining Group or generate 26.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 84.01% |
Values | Daily Returns |
Zijin Mining Group vs. Dow Jones Industrial
Performance |
Timeline |
Zijin Mining and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Zijin Mining Group
Pair trading matchups for Zijin Mining
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Zijin Mining and Dow Jones
The main advantage of trading using opposite Zijin Mining and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.Zijin Mining vs. AngloGold Ashanti plc | Zijin Mining vs. Harmony Gold Mining | Zijin Mining vs. Eldorado Gold Corp | Zijin Mining vs. Kinross Gold |
Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |