Correlation Between Beijing Bashi and Zijin Mining
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By analyzing existing cross correlation between Beijing Bashi Media and Zijin Mining Group, you can compare the effects of market volatilities on Beijing Bashi 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 Beijing Bashi with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and Zijin Mining.
Diversification Opportunities for Beijing Bashi and Zijin Mining
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Zijin is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media 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 Beijing Bashi 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 Beijing Bashi Media 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 Beijing Bashi i.e., Beijing Bashi and Zijin Mining go up and down completely randomly.
Pair Corralation between Beijing Bashi and Zijin Mining
Assuming the 90 days trading horizon Beijing Bashi is expected to generate 1.28 times less return on investment than Zijin Mining. In addition to that, Beijing Bashi is 1.68 times more volatile than Zijin Mining Group. It trades about 0.02 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about 0.05 per unit of volatility. If you would invest 1,151 in Zijin Mining Group on September 1, 2024 and sell it today you would earn a total of 419.00 from holding Zijin Mining Group or generate 36.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Beijing Bashi Media vs. Zijin Mining Group
Performance |
| Timeline |
| Beijing Bashi Media |
| Zijin Mining Group |
Beijing Bashi and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bashi and Zijin Mining
The main advantage of trading using opposite Beijing Bashi and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi 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.| Beijing Bashi vs. Citic Guoan Wine | Beijing Bashi vs. Yangmei Chemical Co | Beijing Bashi vs. Anhui Gujing Distillery | Beijing Bashi vs. Guangzhou Jointas Chemical |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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