Correlation Between Apple and ZIJIN MINING

Can any of the company-specific risk be diversified away by investing in both Apple and ZIJIN MINING 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 Apple and ZIJIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apple Inc and ZIJIN MINING H , you can compare the effects of market volatilities on Apple and ZIJIN MINING 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 Apple with a short position of ZIJIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and ZIJIN MINING.

Diversification Opportunities for Apple and ZIJIN MINING

-0.52

Correlation Coefficient

Apple  ZIJIN MINING

Excellent diversification

The 3 months correlation between Apple and ZIJIN is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and ZIJIN MINING H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZIJIN MINING H and Apple 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 Apple Inc are associated (or correlated) with ZIJIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZIJIN MINING H has no effect on the direction of Apple i.e., Apple and ZIJIN MINING go up and down completely randomly.

Pair Corralation between Apple and ZIJIN MINING

Assuming the 90 days trading horizon Apple Inc is expected to under-perform the ZIJIN MINING. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 1.15 times less risky than ZIJIN MINING. The stock trades about -0.18 of its potential returns per unit of risk. The ZIJIN MINING H is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  176.00  in ZIJIN MINING H on December 21, 2024 and sell it today you would earn a total of  40.00  from holding ZIJIN MINING H or generate 22.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Apple Inc  vs.  ZIJIN MINING H

Apple Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

ZIJIN MINING H

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ZIJIN MINING H are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, ZIJIN MINING unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apple and ZIJIN MINING

The main advantage of trading using opposite Apple and ZIJIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, ZIJIN MINING 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 ZIJIN MINING will offset losses from the drop in ZIJIN MINING's long position.

The idea behind Apple Inc and ZIJIN MINING H pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.