Correlation Between Rongcheer Industrial and Zijin Mining
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By analyzing existing cross correlation between Rongcheer Industrial Technology and Zijin Mining Group, you can compare the effects of market volatilities on Rongcheer Industrial 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 Rongcheer Industrial with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rongcheer Industrial and Zijin Mining.
Diversification Opportunities for Rongcheer Industrial and Zijin Mining
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rongcheer and Zijin is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Rongcheer Industrial Technolog 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 Rongcheer Industrial 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 Rongcheer Industrial Technology 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 Rongcheer Industrial i.e., Rongcheer Industrial and Zijin Mining go up and down completely randomly.
Pair Corralation between Rongcheer Industrial and Zijin Mining
Assuming the 90 days trading horizon Rongcheer Industrial Technology is expected to generate 2.03 times more return on investment than Zijin Mining. However, Rongcheer Industrial is 2.03 times more volatile than Zijin Mining Group. It trades about 0.27 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.27 per unit of risk. If you would invest 4,789 in Rongcheer Industrial Technology on November 18, 2024 and sell it today you would earn a total of 523.00 from holding Rongcheer Industrial Technology or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rongcheer Industrial Technolog vs. Zijin Mining Group
Performance |
| Timeline |
| Rongcheer Industrial |
| Zijin Mining Group |
Rongcheer Industrial and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rongcheer Industrial and Zijin Mining
The main advantage of trading using opposite Rongcheer Industrial and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rongcheer Industrial 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.| Rongcheer Industrial vs. BYD Co Ltd | Rongcheer Industrial vs. China Mobile Limited | Rongcheer Industrial vs. Agricultural Bank of | Rongcheer Industrial vs. Industrial and Commercial |
| Zijin Mining vs. Anhui Tongguan Copper | Zijin Mining vs. INKON Life Technology | Zijin Mining vs. Hefei Metalforming Mach | Zijin Mining vs. Tongling Nonferrous Metals |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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