Correlation Between China Nonferrous and Zijin Mining
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By analyzing existing cross correlation between China Nonferrous Metal and Zijin Mining Group, you can compare the effects of market volatilities on China Nonferrous 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 China Nonferrous with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Nonferrous and Zijin Mining.
Diversification Opportunities for China Nonferrous and Zijin Mining
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Zijin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Nonferrous Metal 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 China Nonferrous 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 China Nonferrous Metal 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 China Nonferrous i.e., China Nonferrous and Zijin Mining go up and down completely randomly.
Pair Corralation between China Nonferrous and Zijin Mining
Assuming the 90 days trading horizon China Nonferrous is expected to generate 2.4 times less return on investment than Zijin Mining. In addition to that, China Nonferrous is 1.08 times more volatile than Zijin Mining Group. It trades about 0.02 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about 0.05 per unit of volatility. If you would invest 1,151 in Zijin Mining Group on September 1, 2024 and sell it today you would earn a total of 419.00 from holding Zijin Mining Group or generate 36.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
China Nonferrous Metal vs. Zijin Mining Group
Performance |
| Timeline |
| China Nonferrous Metal |
| Zijin Mining Group |
China Nonferrous and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Nonferrous and Zijin Mining
The main advantage of trading using opposite China Nonferrous and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Nonferrous 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.| China Nonferrous vs. Allwin Telecommunication Co | China Nonferrous vs. Jilin Jlu Communication | China Nonferrous vs. Guangdong Shenglu Telecommunication | China Nonferrous vs. Zhejiang JIULI Hi tech |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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