Correlation Between Q2M Managementberatu and Zijin Mining

Can any of the company-specific risk be diversified away by investing in both Q2M Managementberatu 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 Q2M Managementberatu and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Q2M Managementberatung AG and Zijin Mining Group, you can compare the effects of market volatilities on Q2M Managementberatu 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 Q2M Managementberatu with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Q2M Managementberatu and Zijin Mining.

Diversification Opportunities for Q2M Managementberatu and Zijin Mining

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Correlation Coefficient

Q2M Managementberatu  Zijin Mining

Pay attention - limited upside

The 3 months correlation between Q2M and Zijin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Q2M Managementberatung AG 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 Q2M Managementberatu 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 Q2M Managementberatung AG 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 Q2M Managementberatu i.e., Q2M Managementberatu and Zijin Mining go up and down completely randomly.

Pair Corralation between Q2M Managementberatu and Zijin Mining

If you would invest  100.00  in Q2M Managementberatung AG on September 1, 2024 and sell it today you would earn a total of  0.00  from holding Q2M Managementberatung AG or generate 0.0% return on investment over 90 days.

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

Q2M Managementberatung AG  vs.  Zijin Mining Group

Q2M Managementberatung

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Q2M Managementberatung AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Q2M Managementberatu is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Zijin Mining Group

Risk-Adjusted Performance

0 of 100

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 newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Q2M Managementberatu and Zijin Mining

The main advantage of trading using opposite Q2M Managementberatu and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Q2M Managementberatu 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 Q2M Managementberatung AG and Zijin Mining Group 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.