Correlation Between Awilco Drilling and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Awilco Drilling 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 Awilco Drilling and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awilco Drilling PLC and Zijin Mining Group, you can compare the effects of market volatilities on Awilco Drilling 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 Awilco Drilling with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awilco Drilling and Zijin Mining.
Diversification Opportunities for Awilco Drilling and Zijin Mining
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Awilco and Zijin is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Awilco Drilling PLC and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group and Awilco Drilling 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 Awilco Drilling PLC 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 Group has no effect on the direction of Awilco Drilling i.e., Awilco Drilling and Zijin Mining go up and down completely randomly.
Pair Corralation between Awilco Drilling and Zijin Mining
If you would invest 191.00 in Zijin Mining Group on December 5, 2024 and sell it today you would lose (1.00) from holding Zijin Mining Group or give up 0.52% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Awilco Drilling PLC vs. Zijin Mining Group
Performance |
Timeline |
Awilco Drilling PLC |
Zijin Mining Group |
Awilco Drilling and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Awilco Drilling and Zijin Mining
The main advantage of trading using opposite Awilco Drilling and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awilco Drilling 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.Awilco Drilling vs. Pearson PLC ADR | Awilco Drilling vs. Universal Technical Institute | Awilco Drilling vs. Zane Interactive Publishing | Awilco Drilling vs. Strategic Education |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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