Correlation Between Xinjiang Zhongtai and Zijin Mining
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By analyzing existing cross correlation between Xinjiang Zhongtai Chemical and Zijin Mining Group, you can compare the effects of market volatilities on Xinjiang Zhongtai 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 Xinjiang Zhongtai with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Zhongtai and Zijin Mining.
Diversification Opportunities for Xinjiang Zhongtai and Zijin Mining
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinjiang and Zijin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Zhongtai Chemical 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 Xinjiang Zhongtai 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 Xinjiang Zhongtai Chemical 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 Xinjiang Zhongtai i.e., Xinjiang Zhongtai and Zijin Mining go up and down completely randomly.
Pair Corralation between Xinjiang Zhongtai and Zijin Mining
Assuming the 90 days trading horizon Xinjiang Zhongtai Chemical is expected to generate 1.42 times more return on investment than Zijin Mining. However, Xinjiang Zhongtai is 1.42 times more volatile than Zijin Mining Group. It trades about 0.28 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 406.00 in Xinjiang Zhongtai Chemical on September 5, 2024 and sell it today you would earn a total of 62.00 from holding Xinjiang Zhongtai Chemical or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Zhongtai Chemical vs. Zijin Mining Group
Performance |
| Timeline |
| Xinjiang Zhongtai |
| Zijin Mining Group |
Xinjiang Zhongtai and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Zhongtai and Zijin Mining
The main advantage of trading using opposite Xinjiang Zhongtai and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Zhongtai 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.| Xinjiang Zhongtai vs. Zijin Mining Group | Xinjiang Zhongtai vs. Wanhua Chemical Group | Xinjiang Zhongtai vs. Baoshan Iron Steel | Xinjiang Zhongtai 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. Shandong Gold Mining |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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