Correlation Between Shenzhen Noposion and Zijin Mining
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Zijin Mining Group, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Zijin Mining.
Diversification Opportunities for Shenzhen Noposion and Zijin Mining
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Zijin is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical 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 Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Zijin Mining go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Zijin Mining
Assuming the 90 days trading horizon Shenzhen Noposion is expected to generate 1.29 times less return on investment than Zijin Mining. In addition to that, Shenzhen Noposion is 1.17 times more volatile than Zijin Mining Group. It trades about 0.03 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about 0.04 per unit of volatility. If you would invest 1,245 in Zijin Mining Group on August 29, 2024 and sell it today you would earn a total of 309.00 from holding Zijin Mining Group or generate 24.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Zijin Mining Group
Performance |
| Timeline |
| Shenzhen Noposion |
| Zijin Mining Group |
Shenzhen Noposion and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Zijin Mining
The main advantage of trading using opposite Shenzhen Noposion and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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