Correlation Between Elite Color and Zijin Mining
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By analyzing existing cross correlation between Elite Color Environmental and Zijin Mining Group, you can compare the effects of market volatilities on Elite Color 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 Elite Color with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Zijin Mining.
Diversification Opportunities for Elite Color and Zijin Mining
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elite and Zijin is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental 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 Elite Color 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 Elite Color Environmental 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 Elite Color i.e., Elite Color and Zijin Mining go up and down completely randomly.
Pair Corralation between Elite Color and Zijin Mining
Assuming the 90 days trading horizon Elite Color Environmental is expected to under-perform the Zijin Mining. In addition to that, Elite Color is 1.27 times more volatile than Zijin Mining Group. It trades about -0.01 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about 0.06 per unit of volatility. If you would invest 1,246 in Zijin Mining Group on August 25, 2024 and sell it today you would earn a total of 330.00 from holding Zijin Mining Group or generate 26.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elite Color Environmental vs. Zijin Mining Group
Performance |
| Timeline |
| Elite Color Environmental |
| Zijin Mining Group |
Elite Color and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Zijin Mining
The main advantage of trading using opposite Elite Color and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color 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.| Elite Color vs. Zijin Mining Group | Elite Color vs. Wanhua Chemical Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Shandong Gold Mining |
| Zijin Mining vs. Tongyu Communication | Zijin Mining vs. Sunwave Communications Co | Zijin Mining vs. China Sports Industry | Zijin Mining vs. Offcn Education Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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