Correlation Between Zhejiang Zanyu and Zijin Mining
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By analyzing existing cross correlation between Zhejiang Zanyu Technology and Zijin Mining Group, you can compare the effects of market volatilities on Zhejiang Zanyu 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 Zhejiang Zanyu with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Zanyu and Zijin Mining.
Diversification Opportunities for Zhejiang Zanyu and Zijin Mining
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhejiang and Zijin is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Zanyu Technology 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 Zhejiang Zanyu 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 Zhejiang Zanyu Technology 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 Zhejiang Zanyu i.e., Zhejiang Zanyu and Zijin Mining go up and down completely randomly.
Pair Corralation between Zhejiang Zanyu and Zijin Mining
Assuming the 90 days trading horizon Zhejiang Zanyu Technology is expected to generate 2.04 times more return on investment than Zijin Mining. However, Zhejiang Zanyu is 2.04 times more volatile than Zijin Mining Group. It trades about 0.28 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.17 per unit of risk. If you would invest 895.00 in Zhejiang Zanyu Technology on September 1, 2024 and sell it today you would earn a total of 215.00 from holding Zhejiang Zanyu Technology or generate 24.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhejiang Zanyu Technology vs. Zijin Mining Group
Performance |
| Timeline |
| Zhejiang Zanyu Technology |
| Zijin Mining Group |
Zhejiang Zanyu and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Zanyu and Zijin Mining
The main advantage of trading using opposite Zhejiang Zanyu and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Zanyu 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.| Zhejiang Zanyu vs. Zijin Mining Group | Zhejiang Zanyu vs. Wanhua Chemical Group | Zhejiang Zanyu vs. Baoshan Iron Steel | Zhejiang Zanyu vs. Shandong Gold Mining |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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