Correlation Between Zijin Mining and Sitka Gold
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Sitka 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 Sitka 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 Sitka Gold Corp, you can compare the effects of market volatilities on Zijin Mining and Sitka 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 Sitka Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Sitka Gold.
Diversification Opportunities for Zijin Mining and Sitka Gold
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and Sitka is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Sitka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitka 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 Sitka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitka Gold Corp has no effect on the direction of Zijin Mining i.e., Zijin Mining and Sitka Gold go up and down completely randomly.
Pair Corralation between Zijin Mining and Sitka Gold
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Sitka Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.87 times less risky than Sitka Gold. The pink sheet trades about -0.21 of its potential returns per unit of risk. The Sitka Gold Corp is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Sitka Gold Corp on August 28, 2024 and sell it today you would lose (4.00) from holding Sitka Gold Corp or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Sitka Gold Corp
Performance |
| Timeline |
| Zijin Mining Group |
| Sitka Gold Corp |
Zijin Mining and Sitka Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Sitka Gold
The main advantage of trading using opposite Zijin Mining and Sitka Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Sitka 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 Sitka Gold will offset losses from the drop in Sitka 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 |
| Sitka Gold vs. Aurion Resources | Sitka Gold vs. Minera Alamos | Sitka Gold vs. Rio2 Limited | Sitka Gold vs. Roscan 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |