Correlation Between Chongqing Shunbo and Zijin Mining
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By analyzing existing cross correlation between Chongqing Shunbo Aluminum and Zijin Mining Group, you can compare the effects of market volatilities on Chongqing Shunbo 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 Chongqing Shunbo with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and Zijin Mining.
Diversification Opportunities for Chongqing Shunbo and Zijin Mining
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and Zijin is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum 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 Chongqing Shunbo 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 Chongqing Shunbo Aluminum 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 Chongqing Shunbo i.e., Chongqing Shunbo and Zijin Mining go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and Zijin Mining
Assuming the 90 days trading horizon Chongqing Shunbo Aluminum is expected to generate 1.32 times more return on investment than Zijin Mining. However, Chongqing Shunbo is 1.32 times more volatile than Zijin Mining Group. It trades about 0.04 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.25 per unit of risk. If you would invest 649.00 in Chongqing Shunbo Aluminum on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Chongqing Shunbo Aluminum or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Shunbo Aluminum vs. Zijin Mining Group
Performance |
| Timeline |
| Chongqing Shunbo Aluminum |
| Zijin Mining Group |
Chongqing Shunbo and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Shunbo and Zijin Mining
The main advantage of trading using opposite Chongqing Shunbo and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo 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.| Chongqing Shunbo vs. Wanhua Chemical Group | Chongqing Shunbo vs. Shandong Gold Mining | Chongqing Shunbo vs. Rongsheng Petrochemical Co | Chongqing Shunbo vs. Inner Mongolia BaoTou |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Shandong Gold Mining | 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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