Correlation Between Anhui Liuguo and Zijin Mining
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By analyzing existing cross correlation between Anhui Liuguo Chemical and Zijin Mining Group, you can compare the effects of market volatilities on Anhui Liuguo 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 Anhui Liuguo with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Liuguo and Zijin Mining.
Diversification Opportunities for Anhui Liuguo and Zijin Mining
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Anhui and Zijin is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Liuguo Chemical 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 Anhui Liuguo 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 Anhui Liuguo Chemical 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 Anhui Liuguo i.e., Anhui Liuguo and Zijin Mining go up and down completely randomly.
Pair Corralation between Anhui Liuguo and Zijin Mining
Assuming the 90 days trading horizon Anhui Liuguo is expected to generate 1.27 times less return on investment than Zijin Mining. In addition to that, Anhui Liuguo is 1.61 times more volatile than Zijin Mining Group. It trades about 0.03 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 1,167 in Zijin Mining Group on September 4, 2024 and sell it today you would earn a total of 389.00 from holding Zijin Mining Group or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Liuguo Chemical vs. Zijin Mining Group
Performance |
| Timeline |
| Anhui Liuguo Chemical |
| Zijin Mining Group |
Anhui Liuguo and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Liuguo and Zijin Mining
The main advantage of trading using opposite Anhui Liuguo and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Liuguo 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.| Anhui Liuguo vs. Zijin Mining Group | Anhui Liuguo vs. Wanhua Chemical Group | Anhui Liuguo vs. Baoshan Iron Steel | Anhui Liuguo vs. Rongsheng Petrochemical Co |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Shandong Gold Mining |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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