Correlation Between Guangzhou Haige and Zijin Mining
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By analyzing existing cross correlation between Guangzhou Haige Communications and Zijin Mining Group, you can compare the effects of market volatilities on Guangzhou Haige 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 Guangzhou Haige with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Zijin Mining.
Diversification Opportunities for Guangzhou Haige and Zijin Mining
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Zijin is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications 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 Guangzhou Haige 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 Guangzhou Haige Communications 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 Guangzhou Haige i.e., Guangzhou Haige and Zijin Mining go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Zijin Mining
Assuming the 90 days trading horizon Guangzhou Haige is expected to generate 1.89 times less return on investment than Zijin Mining. In addition to that, Guangzhou Haige is 1.35 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 0.07 per unit of volatility. If you would invest 1,180 in Zijin Mining Group on September 2, 2024 and sell it today you would earn a total of 390.00 from holding Zijin Mining Group or generate 33.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Zijin Mining Group
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Zijin Mining Group |
Guangzhou Haige and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Zijin Mining
The main advantage of trading using opposite Guangzhou Haige and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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.| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige vs. China Mobile Limited |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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