Correlation Between Xiamen Wanli and Zijin Mining
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By analyzing existing cross correlation between Xiamen Wanli Stone and Zijin Mining Group, you can compare the effects of market volatilities on Xiamen Wanli 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 Xiamen Wanli with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Wanli and Zijin Mining.
Diversification Opportunities for Xiamen Wanli and Zijin Mining
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiamen and Zijin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Wanli Stone 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 Xiamen Wanli 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 Xiamen Wanli Stone 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 Xiamen Wanli i.e., Xiamen Wanli and Zijin Mining go up and down completely randomly.
Pair Corralation between Xiamen Wanli and Zijin Mining
Assuming the 90 days trading horizon Xiamen Wanli Stone is expected to generate 2.16 times more return on investment than Zijin Mining. However, Xiamen Wanli is 2.16 times more volatile than Zijin Mining Group. It trades about -0.02 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.29 per unit of risk. If you would invest 3,625 in Xiamen Wanli Stone on September 4, 2024 and sell it today you would lose (108.00) from holding Xiamen Wanli Stone or give up 2.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Wanli Stone vs. Zijin Mining Group
Performance |
| Timeline |
| Xiamen Wanli Stone |
| Zijin Mining Group |
Xiamen Wanli and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Wanli and Zijin Mining
The main advantage of trading using opposite Xiamen Wanli and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Wanli 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.| Xiamen Wanli vs. Zijin Mining Group | Xiamen Wanli vs. Wanhua Chemical Group | Xiamen Wanli vs. Baoshan Iron Steel | Xiamen Wanli vs. Shandong Gold Mining |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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