Correlation Between Hubei Dinglong and Zijin Mining
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By analyzing existing cross correlation between Hubei Dinglong Chemical and Zijin Mining Group, you can compare the effects of market volatilities on Hubei Dinglong 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 Hubei Dinglong with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Dinglong and Zijin Mining.
Diversification Opportunities for Hubei Dinglong and Zijin Mining
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Zijin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Dinglong Chemical 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 Hubei Dinglong 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 Hubei Dinglong Chemical 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 Hubei Dinglong i.e., Hubei Dinglong and Zijin Mining go up and down completely randomly.
Pair Corralation between Hubei Dinglong and Zijin Mining
Assuming the 90 days trading horizon Hubei Dinglong Chemical is expected to generate 1.71 times more return on investment than Zijin Mining. However, Hubei Dinglong is 1.71 times more volatile than Zijin Mining Group. It trades about 0.18 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.0 per unit of risk. If you would invest 1,905 in Hubei Dinglong Chemical on August 28, 2024 and sell it today you would earn a total of 806.00 from holding Hubei Dinglong Chemical or generate 42.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Dinglong Chemical vs. Zijin Mining Group
Performance |
| Timeline |
| Hubei Dinglong Chemical |
| Zijin Mining Group |
Hubei Dinglong and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Dinglong and Zijin Mining
The main advantage of trading using opposite Hubei Dinglong and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Dinglong 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.| Hubei Dinglong vs. Zijin Mining Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong vs. Shandong Gold Mining | Hubei Dinglong vs. Rongsheng Petrochemical Co |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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