Correlation Between Zijin Mining and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Sligro Food 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 Sligro Food 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 Sligro Food Group, you can compare the effects of market volatilities on Zijin Mining and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Sligro Food.
Diversification Opportunities for Zijin Mining and Sligro Food
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and Sligro is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Zijin Mining i.e., Zijin Mining and Sligro Food go up and down completely randomly.
Pair Corralation between Zijin Mining and Sligro Food
Assuming the 90 days horizon Zijin Mining Group is expected to generate 6.84 times more return on investment than Sligro Food. However, Zijin Mining is 6.84 times more volatile than Sligro Food Group. It trades about 0.09 of its potential returns per unit of risk. Sligro Food Group is currently generating about 0.13 per unit of risk. If you would invest 370.00 in Zijin Mining Group on September 11, 2025 and sell it today you would earn a total of 65.00 from holding Zijin Mining Group or generate 17.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Zijin Mining Group vs. Sligro Food Group
Performance |
| Timeline |
| Zijin Mining Group |
| Sligro Food Group |
Zijin Mining and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Sligro Food
The main advantage of trading using opposite Zijin Mining and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Air Liquide SA | Zijin Mining vs. LAir Liquide SA | Zijin Mining vs. BHP Group Limited |
| Sligro Food vs. Medley Management | Sligro Food vs. Safeplus International Holdings | Sligro Food vs. Sysorex | Sligro Food vs. Beneficial Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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