Correlation Between Zijin Mining and Marie Brizard

Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Marie Brizard 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 Marie Brizard 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 Marie Brizard Wine, you can compare the effects of market volatilities on Zijin Mining and Marie Brizard 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 Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Marie Brizard.

Diversification Opportunities for Zijin Mining and Marie Brizard

-0.56

Correlation Coefficient

Zijin Mining  Marie Brizard

Excellent diversification

The 3 months correlation between Zijin and Marie is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine 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 Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of Zijin Mining i.e., Zijin Mining and Marie Brizard go up and down completely randomly.

Pair Corralation between Zijin Mining and Marie Brizard

Assuming the 90 days horizon Zijin Mining Group is expected to generate 1.55 times more return on investment than Marie Brizard. However, Zijin Mining is 1.55 times more volatile than Marie Brizard Wine. It trades about -0.04 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about -0.16 per unit of risk. If you would invest  180.00  in Zijin Mining Group on December 2, 2024 and sell it today you would lose (5.00) from holding Zijin Mining Group or give up 2.78% of portfolio value over 90 days.

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

Zijin Mining Group  vs.  Marie Brizard Wine

Zijin Mining Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zijin Mining Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Zijin Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Marie Brizard Wine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marie Brizard Wine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Zijin Mining and Marie Brizard

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

The idea behind Zijin Mining Group and Marie Brizard Wine 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.

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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.