Correlation Between Yingde Greatchem and Zijin Mining
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Zijin Mining Group, you can compare the effects of market volatilities on Yingde Greatchem 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 Yingde Greatchem with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Zijin Mining.
Diversification Opportunities for Yingde Greatchem and Zijin Mining
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yingde and Zijin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals 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 Yingde Greatchem 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 Yingde Greatchem Chemicals 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 Yingde Greatchem i.e., Yingde Greatchem and Zijin Mining go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Zijin Mining
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 1.1 times more return on investment than Zijin Mining. However, Yingde Greatchem is 1.1 times more volatile than Zijin Mining Group. It trades about 0.28 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.15 per unit of risk. If you would invest 2,135 in Yingde Greatchem Chemicals on November 4, 2024 and sell it today you would earn a total of 190.00 from holding Yingde Greatchem Chemicals or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Zijin Mining Group
Performance |
| Timeline |
| Yingde Greatchem Che |
| Zijin Mining Group |
Yingde Greatchem and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Zijin Mining
The main advantage of trading using opposite Yingde Greatchem and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem 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.| Yingde Greatchem vs. Fujian Boss Software | Yingde Greatchem vs. Aier Eye Hospital | Yingde Greatchem vs. Beijing Baolande Software | Yingde Greatchem vs. Jiangsu Hoperun Software |
| Zijin Mining vs. Chengdu Xingrong Investment | Zijin Mining vs. Metro Investment Development | Zijin Mining vs. Hubei Geoway Investment | Zijin Mining vs. Linewell Software 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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