Correlation Between Longxing Chemical and Zijin Mining
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By analyzing existing cross correlation between Longxing Chemical Stock and Zijin Mining Group, you can compare the effects of market volatilities on Longxing Chemical 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 Longxing Chemical with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longxing Chemical and Zijin Mining.
Diversification Opportunities for Longxing Chemical and Zijin Mining
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Longxing and Zijin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Longxing Chemical Stock 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 Longxing Chemical 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 Longxing Chemical Stock 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 Longxing Chemical i.e., Longxing Chemical and Zijin Mining go up and down completely randomly.
Pair Corralation between Longxing Chemical and Zijin Mining
Assuming the 90 days trading horizon Longxing Chemical is expected to generate 2.22 times less return on investment than Zijin Mining. In addition to that, Longxing Chemical is 1.14 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 0.06 per unit of volatility. If you would invest 984.00 in Zijin Mining Group on September 12, 2024 and sell it today you would earn a total of 622.00 from holding Zijin Mining Group or generate 63.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longxing Chemical Stock vs. Zijin Mining Group
Performance |
| Timeline |
| Longxing Chemical Stock |
| Zijin Mining Group |
Longxing Chemical and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longxing Chemical and Zijin Mining
The main advantage of trading using opposite Longxing Chemical and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longxing Chemical 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.| Longxing Chemical vs. Zhejiang Yayi Metal | Longxing Chemical vs. Jiangsu Jinling Sports | Longxing Chemical vs. Uroica Mining Safety | Longxing Chemical vs. Shengda Mining Co |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Hoshine Silicon Ind |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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