Correlation Between Zijin Mining and Astral Foods

Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Astral Foods 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 Astral Foods 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 Astral Foods Limited, you can compare the effects of market volatilities on Zijin Mining and Astral Foods 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 Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Astral Foods.

Diversification Opportunities for Zijin Mining and Astral Foods

0.74

Correlation Coefficient

Zijin Mining  Astral Foods

Poor diversification

The 3 months correlation between Zijin and Astral is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Astral Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astral Foods Limited 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 Astral Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astral Foods Limited has no effect on the direction of Zijin Mining i.e., Zijin Mining and Astral Foods go up and down completely randomly.

Pair Corralation between Zijin Mining and Astral Foods

Assuming the 90 days horizon Zijin Mining is expected to generate 1.27 times less return on investment than Astral Foods. But when comparing it to its historical volatility, Zijin Mining Group is 1.43 times less risky than Astral Foods. It trades about 0.11 of its potential returns per unit of risk. Astral Foods Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  627.00  in Astral Foods Limited on May 6, 2025 and sell it today you would earn a total of  168.00  from holding Astral Foods Limited or generate 26.79% return on investment over 90 days.

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

Zijin Mining Group  vs.  Astral Foods Limited

Zijin Mining Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Zijin Mining Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Zijin Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Astral Foods Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Astral Foods Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Astral Foods unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Zijin Mining and Astral Foods

The main advantage of trading using opposite Zijin Mining and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Astral Foods 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 Astral Foods will offset losses from the drop in Astral Foods' long position.

The idea behind Zijin Mining Group and Astral Foods Limited 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.