Correlation Between Shengda Mining and Zijin Mining
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By analyzing existing cross correlation between Shengda Mining Co and Zijin Mining Group, you can compare the effects of market volatilities on Shengda Mining 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 Shengda Mining with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Zijin Mining.
Diversification Opportunities for Shengda Mining and Zijin Mining
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shengda and Zijin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co 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 Shengda 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 Shengda Mining Co 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 Shengda Mining i.e., Shengda Mining and Zijin Mining go up and down completely randomly.
Pair Corralation between Shengda Mining and Zijin Mining
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 1.98 times more return on investment than Zijin Mining. However, Shengda Mining is 1.98 times more volatile than Zijin Mining Group. It trades about -0.08 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.27 per unit of risk. If you would invest 1,358 in Shengda Mining Co on August 25, 2024 and sell it today you would lose (85.00) from holding Shengda Mining Co or give up 6.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shengda Mining Co vs. Zijin Mining Group
Performance |
| Timeline |
| Shengda Mining |
| Zijin Mining Group |
Shengda Mining and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Zijin Mining
The main advantage of trading using opposite Shengda Mining and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining 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.| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Shandong Gold Mining | Shengda Mining vs. Inner Mongolia BaoTou |
| Zijin Mining vs. Zhengzhou Coal Mining | Zijin Mining vs. Universal Scientific Industrial | Zijin Mining vs. Qingdao Choho Industrial | Zijin Mining vs. Rongcheer Industrial Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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