Correlation Between Qingdao Choho and Zijin Mining
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By analyzing existing cross correlation between Qingdao Choho Industrial and Zijin Mining Group, you can compare the effects of market volatilities on Qingdao Choho 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 Qingdao Choho with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Zijin Mining.
Diversification Opportunities for Qingdao Choho and Zijin Mining
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Zijin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho 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 Qingdao Choho 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 Qingdao Choho 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 Qingdao Choho i.e., Qingdao Choho and Zijin Mining go up and down completely randomly.
Pair Corralation between Qingdao Choho and Zijin Mining
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to generate 1.19 times more return on investment than Zijin Mining. However, Qingdao Choho is 1.19 times more volatile than Zijin Mining Group. It trades about -0.06 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.26 per unit of risk. If you would invest 2,730 in Qingdao Choho Industrial on August 28, 2024 and sell it today you would lose (89.00) from holding Qingdao Choho Industrial or give up 3.26% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Qingdao Choho Industrial vs. Zijin Mining Group
Performance |
Timeline |
Qingdao Choho Industrial |
Zijin Mining Group |
Qingdao Choho and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qingdao Choho and Zijin Mining
The main advantage of trading using opposite Qingdao Choho and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho 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.Qingdao Choho vs. Loongson Technology Corp | Qingdao Choho vs. Chongqing Road Bridge | Qingdao Choho vs. Shenzhen Fortune Trend | Qingdao Choho vs. Wuhan Xianglong Power |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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