Correlation Between Zijin Mining and Minaurum Gold
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Minaurum 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 Minaurum 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 Minaurum Gold, you can compare the effects of market volatilities on Zijin Mining and Minaurum 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 Minaurum Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Minaurum Gold.
Diversification Opportunities for Zijin Mining and Minaurum Gold
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and Minaurum is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Minaurum Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minaurum Gold 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 Minaurum Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minaurum Gold has no effect on the direction of Zijin Mining i.e., Zijin Mining and Minaurum Gold go up and down completely randomly.
Pair Corralation between Zijin Mining and Minaurum Gold
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.51 times more return on investment than Minaurum Gold. However, Zijin Mining Group is 1.96 times less risky than Minaurum Gold. It trades about -0.21 of its potential returns per unit of risk. Minaurum Gold is currently generating about -0.16 per unit of risk. If you would invest 4,505 in Zijin Mining Group on August 25, 2024 and sell it today you would lose (682.00) from holding Zijin Mining Group or give up 15.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zijin Mining Group vs. Minaurum Gold
Performance |
| Timeline |
| Zijin Mining Group |
| Minaurum Gold |
Zijin Mining and Minaurum Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Minaurum Gold
The main advantage of trading using opposite Zijin Mining and Minaurum Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Minaurum 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 Minaurum Gold will offset losses from the drop in Minaurum Gold's 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 |
| Minaurum Gold vs. Rio2 Limited | Minaurum Gold vs. Aurion Resources | Minaurum Gold vs. Norsemont Mining | Minaurum Gold vs. Vior Inc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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