Correlation Between Zhejiang Juhua and Zijin Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Juhua Co and Zijin Mining Group, you can compare the effects of market volatilities on Zhejiang Juhua 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 Zhejiang Juhua with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Zijin Mining.
Diversification Opportunities for Zhejiang Juhua and Zijin Mining
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Zijin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua Co 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 Zhejiang Juhua 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 Zhejiang Juhua Co 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 Zhejiang Juhua i.e., Zhejiang Juhua and Zijin Mining go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Zijin Mining
Assuming the 90 days trading horizon Zhejiang Juhua Co is expected to generate 1.24 times more return on investment than Zijin Mining. However, Zhejiang Juhua is 1.24 times more volatile than Zijin Mining Group. It trades about 0.08 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.25 per unit of risk. If you would invest 2,100 in Zhejiang Juhua Co on August 24, 2024 and sell it today you would earn a total of 73.00 from holding Zhejiang Juhua Co or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. Zijin Mining Group
Performance |
| Timeline |
| Zhejiang Juhua |
| Zijin Mining Group |
Zhejiang Juhua and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Zijin Mining
The main advantage of trading using opposite Zhejiang Juhua and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua 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.| Zhejiang Juhua vs. Sinocat Environmental Technology | Zhejiang Juhua vs. Jinhui Liquor Co | Zhejiang Juhua vs. Zhejiang Qianjiang Motorcycle | Zhejiang Juhua vs. Beijing SPC Environment |
| Zijin Mining vs. Zhengzhou Coal Mining | Zijin Mining vs. Universal Scientific Industrial | Zijin Mining vs. Qingdao Choho Industrial | Zijin Mining vs. Rongcheer Industrial Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |