Correlation Between Hyrican Informationssyst and ZIJIN MINING

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

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

Diversification Opportunities for Hyrican Informationssyst and ZIJIN MINING

-0.37

Correlation Coefficient

Hyrican Informationssyst  ZIJIN MINING

Very good diversification

The 3 months correlation between Hyrican and ZIJIN is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hyrican Informationssysteme Ak 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 Hyrican Informationssyst 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 Hyrican Informationssysteme Aktiengesellschaft 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 Hyrican Informationssyst i.e., Hyrican Informationssyst and ZIJIN MINING go up and down completely randomly.

Pair Corralation between Hyrican Informationssyst and ZIJIN MINING

Assuming the 90 days horizon Hyrican Informationssyst is expected to generate 2.69 times less return on investment than ZIJIN MINING. But when comparing it to its historical volatility, Hyrican Informationssysteme Aktiengesellschaft is 1.19 times less risky than ZIJIN MINING. It trades about 0.03 of its potential returns per unit of risk. ZIJIN MINING H is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  109.00  in ZIJIN MINING H on October 22, 2024 and sell it today you would earn a total of  82.00  from holding ZIJIN MINING H or generate 75.23% return on investment over 90 days.

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

Hyrican Informationssysteme Ak  vs.  ZIJIN MINING H

Hyrican Informationssyst

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hyrican Informationssysteme Aktiengesellschaft are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Hyrican Informationssyst is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

ZIJIN MINING H

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZIJIN MINING H has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ZIJIN MINING is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Hyrican Informationssyst and ZIJIN MINING

The main advantage of trading using opposite Hyrican Informationssyst and ZIJIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyrican Informationssyst 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 Hyrican Informationssysteme Aktiengesellschaft 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.