Correlation Between Shandong Mining and Zijin Mining
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By analyzing existing cross correlation between Shandong Mining Machinery and Zijin Mining Group, you can compare the effects of market volatilities on Shandong Mining 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 Shandong Mining with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Zijin Mining.
Diversification Opportunities for Shandong Mining and Zijin Mining
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shandong and Zijin is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery 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 Shandong Mining 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 Shandong Mining Machinery 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 Shandong Mining i.e., Shandong Mining and Zijin Mining go up and down completely randomly.
Pair Corralation between Shandong Mining and Zijin Mining
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 1.54 times more return on investment than Zijin Mining. However, Shandong Mining is 1.54 times more volatile than Zijin Mining Group. It trades about 0.06 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.05 per unit of risk. If you would invest 276.00 in Shandong Mining Machinery on September 4, 2024 and sell it today you would earn a total of 120.00 from holding Shandong Mining Machinery or generate 43.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Zijin Mining Group
Performance |
| Timeline |
| Shandong Mining Machinery |
| Zijin Mining Group |
Shandong Mining and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Zijin Mining
The main advantage of trading using opposite Shandong Mining and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining 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.| Shandong Mining vs. Xinjiang Communications Construction | Shandong Mining vs. Nanjing Putian Telecommunications | Shandong Mining vs. Jonjee Hi tech Industrial | Shandong Mining vs. Zoje Resources Investment |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Shandong Gold Mining |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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