Correlation Between Shenzhen Urban and Zijin Mining
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By analyzing existing cross correlation between Shenzhen Urban Transport and Zijin Mining Group, you can compare the effects of market volatilities on Shenzhen Urban 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 Shenzhen Urban with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Urban and Zijin Mining.
Diversification Opportunities for Shenzhen Urban and Zijin Mining
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Zijin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Urban Transport 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 Shenzhen Urban 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 Shenzhen Urban Transport 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 Shenzhen Urban i.e., Shenzhen Urban and Zijin Mining go up and down completely randomly.
Pair Corralation between Shenzhen Urban and Zijin Mining
Assuming the 90 days trading horizon Shenzhen Urban Transport is expected to under-perform the Zijin Mining. In addition to that, Shenzhen Urban is 2.64 times more volatile than Zijin Mining Group. It trades about -0.07 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about -0.07 per unit of volatility. If you would invest 1,720 in Zijin Mining Group on October 26, 2024 and sell it today you would lose (132.00) from holding Zijin Mining Group or give up 7.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Urban Transport vs. Zijin Mining Group
Performance |
| Timeline |
| Shenzhen Urban Transport |
| Zijin Mining Group |
Shenzhen Urban and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Urban and Zijin Mining
The main advantage of trading using opposite Shenzhen Urban and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Urban 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.| Shenzhen Urban vs. Mingchen Health Co | Shenzhen Urban vs. Leyard Optoelectronic | Shenzhen Urban vs. Sanbo Hospital Management | Shenzhen Urban vs. Humanwell Healthcare Group |
| Zijin Mining vs. Heilongjiang Publishing Media | Zijin Mining vs. Hainan Haiqi Transportation | Zijin Mining vs. Chinese Universe Publishing | Zijin Mining vs. Shenzhen Urban Transport |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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