Correlation Between Zijin Mining and Allient
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Allient 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 Allient 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 Allient, you can compare the effects of market volatilities on Zijin Mining and Allient 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 Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Allient.
Diversification Opportunities for Zijin Mining and Allient
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zijin and Allient is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient 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 Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of Zijin Mining i.e., Zijin Mining and Allient go up and down completely randomly.
Pair Corralation between Zijin Mining and Allient
Assuming the 90 days horizon Zijin Mining Group is expected to generate 3.12 times more return on investment than Allient. However, Zijin Mining is 3.12 times more volatile than Allient. It trades about 0.06 of its potential returns per unit of risk. Allient is currently generating about -0.01 per unit of risk. If you would invest 95.00 in Zijin Mining Group on September 24, 2024 and sell it today you would earn a total of 90.00 from holding Zijin Mining Group or generate 94.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 90.56% |
Values | Daily Returns |
Zijin Mining Group vs. Allient
Performance |
Timeline |
Zijin Mining Group |
Allient |
Zijin Mining and Allient Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zijin Mining and Allient
The main advantage of trading using opposite Zijin Mining and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Allient 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 Allient will offset losses from the drop in Allient's long position.Zijin Mining vs. Lion One Metals | Zijin Mining vs. Westhaven Gold Corp | Zijin Mining vs. Satori Resources | Zijin Mining vs. Wesdome Gold Mines |
Allient vs. Hf Foods Group | Allient vs. NH Foods Ltd | Allient vs. Integral Ad Science | Allient vs. Zijin Mining Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |