Correlation Between Anhui Jinhe and Zijin Mining
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By analyzing existing cross correlation between Anhui Jinhe Industrial and Zijin Mining Group, you can compare the effects of market volatilities on Anhui Jinhe 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 Anhui Jinhe with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jinhe and Zijin Mining.
Diversification Opportunities for Anhui Jinhe and Zijin Mining
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Zijin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jinhe Industrial 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 Anhui Jinhe 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 Anhui Jinhe Industrial 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 Anhui Jinhe i.e., Anhui Jinhe and Zijin Mining go up and down completely randomly.
Pair Corralation between Anhui Jinhe and Zijin Mining
Assuming the 90 days trading horizon Anhui Jinhe Industrial is expected to generate 0.98 times more return on investment than Zijin Mining. However, Anhui Jinhe Industrial is 1.02 times less risky than Zijin Mining. It trades about 0.16 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.11 per unit of risk. If you would invest 2,285 in Anhui Jinhe Industrial on October 25, 2024 and sell it today you would earn a total of 125.00 from holding Anhui Jinhe Industrial or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jinhe Industrial vs. Zijin Mining Group
Performance |
| Timeline |
| Anhui Jinhe Industrial |
| Zijin Mining Group |
Anhui Jinhe and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jinhe and Zijin Mining
The main advantage of trading using opposite Anhui Jinhe and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jinhe 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.| Anhui Jinhe vs. Zijin Mining Group | Anhui Jinhe vs. Wanhua Chemical Group | Anhui Jinhe vs. Baoshan Iron Steel | Anhui Jinhe vs. Rongsheng Petrochemical Co |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Inner Mongolia BaoTou |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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