Correlation Between Xian Sunresin and Zijin Mining
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By analyzing existing cross correlation between Xian Sunresin New and Zijin Mining Group, you can compare the effects of market volatilities on Xian Sunresin 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 Xian Sunresin with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian Sunresin and Zijin Mining.
Diversification Opportunities for Xian Sunresin and Zijin Mining
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xian and Zijin is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Xian Sunresin New 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 Xian Sunresin 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 Xian Sunresin New 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 Xian Sunresin i.e., Xian Sunresin and Zijin Mining go up and down completely randomly.
Pair Corralation between Xian Sunresin and Zijin Mining
Assuming the 90 days trading horizon Xian Sunresin New is expected to generate 1.51 times more return on investment than Zijin Mining. However, Xian Sunresin is 1.51 times more volatile than Zijin Mining Group. It trades about 0.21 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.17 per unit of risk. If you would invest 4,890 in Xian Sunresin New on September 1, 2024 and sell it today you would earn a total of 637.00 from holding Xian Sunresin New or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xian Sunresin New vs. Zijin Mining Group
Performance |
| Timeline |
| Xian Sunresin New |
| Zijin Mining Group |
Xian Sunresin and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian Sunresin and Zijin Mining
The main advantage of trading using opposite Xian Sunresin and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian Sunresin 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.| Xian Sunresin vs. Heilongjiang Transport Development | Xian Sunresin vs. China Aluminum International | Xian Sunresin vs. Tianshan Aluminum Group | Xian Sunresin vs. Aluminum Corp of |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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