Correlation Between China Securities and Zijin Mining
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By analyzing existing cross correlation between China Securities 800 and Zijin Mining Group, you can compare the effects of market volatilities on China Securities 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 Securities with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Zijin Mining.
Diversification Opportunities for China Securities and Zijin Mining
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Zijin is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 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 Securities 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 Securities 800 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 Securities i.e., China Securities and Zijin Mining go up and down completely randomly.
Pair Corralation between China Securities and Zijin Mining
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.8 times more return on investment than Zijin Mining. However, China Securities 800 is 1.24 times less risky than Zijin Mining. It trades about -0.1 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.25 per unit of risk. If you would invest 427,943 in China Securities 800 on August 28, 2024 and sell it today you would lose (13,470) from holding China Securities 800 or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Zijin Mining Group
Performance |
| Timeline |
China Securities and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Zijin Mining Group
Pair trading matchups for Zijin Mining
Pair Trading with China Securities and Zijin Mining
The main advantage of trading using opposite China Securities and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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 Securities vs. Shandong Ruifeng Chemical | China Securities vs. Zhongtong Guomai Communication | China Securities vs. Gome Telecom Equipment | China Securities vs. Dymatic Chemicals |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Inner Mongolia BaoTou |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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