Correlation Between Puyang Huicheng and Zijin Mining
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By analyzing existing cross correlation between Puyang Huicheng Electronic and Zijin Mining Group, you can compare the effects of market volatilities on Puyang Huicheng 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 Puyang Huicheng with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puyang Huicheng and Zijin Mining.
Diversification Opportunities for Puyang Huicheng and Zijin Mining
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Puyang and Zijin is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Puyang Huicheng Electronic 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 Puyang Huicheng 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 Puyang Huicheng Electronic 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 Puyang Huicheng i.e., Puyang Huicheng and Zijin Mining go up and down completely randomly.
Pair Corralation between Puyang Huicheng and Zijin Mining
Assuming the 90 days trading horizon Puyang Huicheng Electronic is expected to generate 1.52 times more return on investment than Zijin Mining. However, Puyang Huicheng is 1.52 times more volatile than Zijin Mining Group. It trades about 0.05 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.07 per unit of risk. If you would invest 1,131 in Puyang Huicheng Electronic on November 3, 2024 and sell it today you would earn a total of 329.00 from holding Puyang Huicheng Electronic or generate 29.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puyang Huicheng Electronic vs. Zijin Mining Group
Performance |
| Timeline |
| Puyang Huicheng Elec |
| Zijin Mining Group |
Puyang Huicheng and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puyang Huicheng and Zijin Mining
The main advantage of trading using opposite Puyang Huicheng and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puyang Huicheng 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.| Puyang Huicheng vs. Jointo Energy Investment | Puyang Huicheng vs. Zhongrun Resources Investment | Puyang Huicheng vs. Zhengzhou Coal Mining | Puyang Huicheng vs. Xinjiang Baodi Mining |
| Zijin Mining vs. Fiberhome Telecommunication Technologies | Zijin Mining vs. Tongyu Communication | Zijin Mining vs. Changjiang Publishing Media | Zijin Mining vs. Allwin Telecommunication Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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