Correlation Between ADAMA and Zijin Mining
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By analyzing existing cross correlation between ADAMA and Zijin Mining Group, you can compare the effects of market volatilities on ADAMA 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 ADAMA with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADAMA and Zijin Mining.
Diversification Opportunities for ADAMA and Zijin Mining
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ADAMA and Zijin is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding ADAMA 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 ADAMA 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 ADAMA 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 ADAMA i.e., ADAMA and Zijin Mining go up and down completely randomly.
Pair Corralation between ADAMA and Zijin Mining
Assuming the 90 days trading horizon ADAMA is expected to under-perform the Zijin Mining. In addition to that, ADAMA is 1.84 times more volatile than Zijin Mining Group. It trades about -0.35 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about -0.25 per unit of volatility. If you would invest 1,722 in Zijin Mining Group on August 30, 2024 and sell it today you would lose (169.00) from holding Zijin Mining Group or give up 9.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADAMA vs. Zijin Mining Group
Performance |
| Timeline |
| ADAMA |
| Zijin Mining Group |
ADAMA and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADAMA and Zijin Mining
The main advantage of trading using opposite ADAMA and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADAMA 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.| ADAMA vs. Zijin Mining Group | ADAMA vs. Wanhua Chemical Group | ADAMA vs. Baoshan Iron Steel | ADAMA vs. Shandong Gold Mining |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Hoshine Silicon Ind |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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