Correlation Between Zhejiang Qianjiang and Zijin Mining
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By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and Zijin Mining Group, you can compare the effects of market volatilities on Zhejiang Qianjiang 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 Zhejiang Qianjiang with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and Zijin Mining.
Diversification Opportunities for Zhejiang Qianjiang and Zijin Mining
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhejiang and Zijin is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle 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 Zhejiang Qianjiang 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 Zhejiang Qianjiang Motorcycle 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 Zhejiang Qianjiang i.e., Zhejiang Qianjiang and Zijin Mining go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and Zijin Mining
Assuming the 90 days trading horizon Zhejiang Qianjiang is expected to generate 2.12 times less return on investment than Zijin Mining. In addition to that, Zhejiang Qianjiang is 1.77 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 0.08 per unit of volatility. If you would invest 1,562 in Zijin Mining Group on October 16, 2024 and sell it today you would earn a total of 78.00 from holding Zijin Mining Group or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. Zijin Mining Group
Performance |
| Timeline |
| Zhejiang Qianjiang |
| Zijin Mining Group |
Zhejiang Qianjiang and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Qianjiang and Zijin Mining
The main advantage of trading using opposite Zhejiang Qianjiang and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang 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.| Zhejiang Qianjiang vs. Shandong Sanyuan Biotechnology | Zhejiang Qianjiang vs. Shenzhen Bioeasy Biotechnology | Zhejiang Qianjiang vs. Ligao Foods CoLtd | Zhejiang Qianjiang vs. Shanghai Ziyan Foods |
| Zijin Mining vs. Advanced Technology Materials | Zijin Mining vs. Jiangyin Haida Rubber | Zijin Mining vs. Zhejiang Qianjiang Motorcycle | Zijin Mining vs. Haima Automobile Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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