Correlation Between Minnova Corp and Zijin Mining

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

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

Diversification Opportunities for Minnova Corp and Zijin Mining

0.6

Correlation Coefficient

Minnova Corp  Zijin Mining

Poor diversification

The 3 months correlation between Minnova and Zijin is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Minnova Corp 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 Minnova Corp 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 Minnova Corp 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 Minnova Corp i.e., Minnova Corp and Zijin Mining go up and down completely randomly.

Pair Corralation between Minnova Corp and Zijin Mining

If you would invest  6.00  in Minnova Corp on March 28, 2024 and sell it today you would earn a total of  0.00  from holding Minnova Corp or generate 0.0% return on investment over 90 days.

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

Minnova Corp  vs.  Zijin Mining Group

Minnova Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Minnova Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain fundamental indicators, Minnova Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Zijin Mining Group

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Zijin Mining Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong primary indicators, Zijin Mining is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Minnova Corp and Zijin Mining

The main advantage of trading using opposite Minnova Corp and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minnova Corp 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 Minnova Corp 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.