Correlation Between Shandong Gold and Zijin Mining
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By analyzing existing cross correlation between Shandong Gold Mining and Zijin Mining Group, you can compare the effects of market volatilities on Shandong Gold 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 Shandong Gold with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Zijin Mining.
Diversification Opportunities for Shandong Gold and Zijin Mining
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Zijin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining 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 Shandong Gold 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 Shandong Gold Mining 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 Shandong Gold i.e., Shandong Gold and Zijin Mining go up and down completely randomly.
Pair Corralation between Shandong Gold and Zijin Mining
Assuming the 90 days trading horizon Shandong Gold is expected to generate 1.34 times less return on investment than Zijin Mining. In addition to that, Shandong Gold is 1.05 times more volatile than Zijin Mining Group. It trades about 0.16 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about 0.22 per unit of volatility. If you would invest 1,518 in Zijin Mining Group on November 2, 2024 and sell it today you would earn a total of 106.00 from holding Zijin Mining Group or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Zijin Mining Group
Performance |
| Timeline |
| Shandong Gold Mining |
| Zijin Mining Group |
Shandong Gold and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Zijin Mining
The main advantage of trading using opposite Shandong Gold and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold 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.| Shandong Gold vs. Sharetronic Data Technology | Shandong Gold vs. COL Digital Publishing | Shandong Gold vs. Sinofibers Technology Co | Shandong Gold vs. Changjiang Publishing Media |
| Zijin Mining vs. CICT Mobile Communication | Zijin Mining vs. Queclink Wireless Solutions | Zijin Mining vs. Nantong JiangTian Chemical | Zijin Mining vs. Guangxi Wuzhou Communications |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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