Correlation Between Shanghai Phichem and Zijin Mining
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By analyzing existing cross correlation between Shanghai Phichem Material and Zijin Mining Group, you can compare the effects of market volatilities on Shanghai Phichem 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 Shanghai Phichem with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Zijin Mining.
Diversification Opportunities for Shanghai Phichem and Zijin Mining
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Zijin is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material 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 Shanghai Phichem 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 Shanghai Phichem Material 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 Shanghai Phichem i.e., Shanghai Phichem and Zijin Mining go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Zijin Mining
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to generate 1.04 times more return on investment than Zijin Mining. However, Shanghai Phichem is 1.04 times more volatile than Zijin Mining Group. It trades about 0.26 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.18 per unit of risk. If you would invest 1,470 in Shanghai Phichem Material on November 6, 2024 and sell it today you would earn a total of 115.00 from holding Shanghai Phichem Material or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. Zijin Mining Group
Performance |
| Timeline |
| Shanghai Phichem Material |
| Zijin Mining Group |
Shanghai Phichem and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Zijin Mining
The main advantage of trading using opposite Shanghai Phichem and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem 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.| Shanghai Phichem vs. Fibocom Wireless | Shanghai Phichem vs. Shanghai V Test Semiconductor | Shanghai Phichem vs. Bank of Communications | Shanghai Phichem vs. Thinkon Semiconductor Jinzhou |
| Zijin Mining vs. Hainan Mining Co | Zijin Mining vs. Anhui Jinhe Industrial | Zijin Mining vs. Shenzhen Bioeasy Biotechnology | Zijin Mining vs. Chengtun Mining Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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