Correlation Between Shanxi Tond and Zijin Mining
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By analyzing existing cross correlation between Shanxi Tond Chemical and Zijin Mining Group, you can compare the effects of market volatilities on Shanxi Tond 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 Shanxi Tond with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanxi Tond and Zijin Mining.
Diversification Opportunities for Shanxi Tond and Zijin Mining
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanxi and Zijin is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shanxi Tond 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 Shanxi Tond 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 Shanxi Tond 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 Shanxi Tond i.e., Shanxi Tond and Zijin Mining go up and down completely randomly.
Pair Corralation between Shanxi Tond and Zijin Mining
Assuming the 90 days trading horizon Shanxi Tond Chemical is expected to under-perform the Zijin Mining. But the stock apears to be less risky and, when comparing its historical volatility, Shanxi Tond Chemical is 1.0 times less risky than Zijin Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Zijin Mining Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,022 in Zijin Mining Group on September 26, 2024 and sell it today you would earn a total of 541.00 from holding Zijin Mining Group or generate 52.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shanxi Tond Chemical vs. Zijin Mining Group
Performance |
| Timeline |
| Shanxi Tond Chemical |
| Zijin Mining Group |
Shanxi Tond and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanxi Tond and Zijin Mining
The main advantage of trading using opposite Shanxi Tond and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanxi Tond 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.| Shanxi Tond vs. Zijin Mining Group | Shanxi Tond vs. Wanhua Chemical Group | Shanxi Tond vs. Baoshan Iron Steel | Shanxi Tond 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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