Correlation Between Guangdong Qunxing and Zijin Mining
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Zijin Mining Group, you can compare the effects of market volatilities on Guangdong Qunxing 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 Guangdong Qunxing with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Zijin Mining.
Diversification Opportunities for Guangdong Qunxing and Zijin Mining
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangdong and Zijin is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys 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 Guangdong Qunxing 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 Guangdong Qunxing Toys 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 Guangdong Qunxing i.e., Guangdong Qunxing and Zijin Mining go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Zijin Mining
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to under-perform the Zijin Mining. In addition to that, Guangdong Qunxing is 2.39 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 0.14 per unit of volatility. If you would invest 1,551 in Zijin Mining Group on October 22, 2024 and sell it today you would earn a total of 76.00 from holding Zijin Mining Group or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Zijin Mining Group
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Zijin Mining Group |
Guangdong Qunxing and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Zijin Mining
The main advantage of trading using opposite Guangdong Qunxing and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing 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.| Guangdong Qunxing vs. Weihai Honglin Electronic | Guangdong Qunxing vs. Xizi Clean Energy | Guangdong Qunxing vs. Fuzhou Rockchip Electronics | Guangdong Qunxing vs. Guangzhou Restaurants Group |
| Zijin Mining vs. Chongqing Brewery Co | Zijin Mining vs. Advanced Technology Materials | Zijin Mining vs. China Building Material | Zijin Mining vs. GRIPM Advanced Materials |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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