Correlation Between Hengli Petrochemical and Zijin Mining
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By analyzing existing cross correlation between Hengli Petrochemical Co and Zijin Mining Group, you can compare the effects of market volatilities on Hengli Petrochemical 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 Hengli Petrochemical with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Petrochemical and Zijin Mining.
Diversification Opportunities for Hengli Petrochemical and Zijin Mining
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengli and Zijin is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Petrochemical 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 Hengli Petrochemical 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 Hengli Petrochemical 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 Hengli Petrochemical i.e., Hengli Petrochemical and Zijin Mining go up and down completely randomly.
Pair Corralation between Hengli Petrochemical and Zijin Mining
Assuming the 90 days trading horizon Hengli Petrochemical is expected to generate 14.32 times less return on investment than Zijin Mining. But when comparing it to its historical volatility, Hengli Petrochemical Co is 1.21 times less risky than Zijin Mining. It trades about 0.01 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 962.00 in Zijin Mining Group on September 14, 2024 and sell it today you would earn a total of 662.00 from holding Zijin Mining Group or generate 68.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Petrochemical Co vs. Zijin Mining Group
Performance |
| Timeline |
| Hengli Petrochemical |
| Zijin Mining Group |
Hengli Petrochemical and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Petrochemical and Zijin Mining
The main advantage of trading using opposite Hengli Petrochemical and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Petrochemical 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.| Hengli Petrochemical vs. Nantong Haixing Electronics | Hengli Petrochemical vs. HaiXin Foods Co | Hengli Petrochemical vs. Shanghai Ziyan Foods | Hengli Petrochemical vs. Leyard Optoelectronic |
| Zijin Mining vs. Shanghai Ziyan Foods | Zijin Mining vs. Lootom Telcovideo Network | Zijin Mining vs. Anji Foodstuff Co | Zijin Mining vs. Youyou Foods 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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