Correlation Between Rongsheng Petrochemical and Zijin Mining
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By analyzing existing cross correlation between Rongsheng Petrochemical Co and Zijin Mining Group, you can compare the effects of market volatilities on Rongsheng Petrochemical 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 Rongsheng Petrochemical with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rongsheng Petrochemical and Zijin Mining.
Diversification Opportunities for Rongsheng Petrochemical and Zijin Mining
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rongsheng and Zijin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Rongsheng Petrochemical Co 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 Rongsheng Petrochemical 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 Rongsheng Petrochemical Co 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 Rongsheng Petrochemical i.e., Rongsheng Petrochemical and Zijin Mining go up and down completely randomly.
Pair Corralation between Rongsheng Petrochemical and Zijin Mining
Assuming the 90 days trading horizon Rongsheng Petrochemical Co is expected to generate 0.89 times more return on investment than Zijin Mining. However, Rongsheng Petrochemical Co is 1.13 times less risky than Zijin Mining. It trades about 0.02 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 939.00 in Rongsheng Petrochemical Co on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Rongsheng Petrochemical Co or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Rongsheng Petrochemical Co vs. Zijin Mining Group
Performance |
| Timeline |
| Rongsheng Petrochemical |
| Zijin Mining Group |
Rongsheng Petrochemical and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rongsheng Petrochemical and Zijin Mining
The main advantage of trading using opposite Rongsheng Petrochemical and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rongsheng Petrochemical 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.| Rongsheng Petrochemical vs. Zijin Mining Group | Rongsheng Petrochemical vs. Wanhua Chemical Group | Rongsheng Petrochemical vs. Baoshan Iron Steel | Rongsheng Petrochemical vs. Shandong Gold Mining |
| Zijin Mining vs. Tongyu Communication | Zijin Mining vs. Sunwave Communications Co | Zijin Mining vs. China Sports Industry | Zijin Mining vs. Offcn Education Technology |
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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