Correlation Between Hangzhou Gaoxin and Zijin Mining
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By analyzing existing cross correlation between Hangzhou Gaoxin Rubber and Zijin Mining Group, you can compare the effects of market volatilities on Hangzhou Gaoxin 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 Hangzhou Gaoxin with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gaoxin and Zijin Mining.
Diversification Opportunities for Hangzhou Gaoxin and Zijin Mining
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hangzhou and Zijin is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin 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 Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin i.e., Hangzhou Gaoxin and Zijin Mining go up and down completely randomly.
Pair Corralation between Hangzhou Gaoxin and Zijin Mining
Assuming the 90 days trading horizon Hangzhou Gaoxin Rubber is expected to generate 1.35 times more return on investment than Zijin Mining. However, Hangzhou Gaoxin is 1.35 times more volatile than Zijin Mining Group. It trades about -0.07 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.27 per unit of risk. If you would invest 1,125 in Hangzhou Gaoxin Rubber on September 3, 2024 and sell it today you would lose (43.00) from holding Hangzhou Gaoxin Rubber or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gaoxin Rubber vs. Zijin Mining Group
Performance |
| Timeline |
| Hangzhou Gaoxin Rubber |
| Zijin Mining Group |
Hangzhou Gaoxin and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gaoxin and Zijin Mining
The main advantage of trading using opposite Hangzhou Gaoxin and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gaoxin 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.| Hangzhou Gaoxin vs. Zijin Mining Group | Hangzhou Gaoxin vs. Baoshan Iron Steel | Hangzhou Gaoxin vs. Hoshine Silicon Ind |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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