Correlation Between Jiangxi Naipu and Zijin Mining
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Zijin Mining Group, you can compare the effects of market volatilities on Jiangxi Naipu 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 Jiangxi Naipu with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Zijin Mining.
Diversification Opportunities for Jiangxi Naipu and Zijin Mining
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Zijin is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining 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 Jiangxi Naipu 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 Jiangxi Naipu Mining 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 Jiangxi Naipu i.e., Jiangxi Naipu and Zijin Mining go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Zijin Mining
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 1.66 times more return on investment than Zijin Mining. However, Jiangxi Naipu is 1.66 times more volatile than Zijin Mining Group. It trades about 0.15 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.11 per unit of risk. If you would invest 2,225 in Jiangxi Naipu Mining on September 12, 2024 and sell it today you would earn a total of 710.00 from holding Jiangxi Naipu Mining or generate 31.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Zijin Mining Group
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Zijin Mining Group |
Jiangxi Naipu and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Zijin Mining
The main advantage of trading using opposite Jiangxi Naipu and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu 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.| Jiangxi Naipu vs. Tonghua Grape Wine | Jiangxi Naipu vs. Hang Xiao Steel | Jiangxi Naipu vs. Beijing SPC Environment | Jiangxi Naipu vs. Panda Financial Holding |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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