Correlation Between Luyin Investment and Zijin Mining
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By analyzing existing cross correlation between Luyin Investment Group and Zijin Mining Group, you can compare the effects of market volatilities on Luyin Investment 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 Luyin Investment with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Zijin Mining.
Diversification Opportunities for Luyin Investment and Zijin Mining
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Zijin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group 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 Luyin Investment 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 Luyin Investment Group 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 Luyin Investment i.e., Luyin Investment and Zijin Mining go up and down completely randomly.
Pair Corralation between Luyin Investment and Zijin Mining
Assuming the 90 days trading horizon Luyin Investment is expected to generate 22.86 times less return on investment than Zijin Mining. In addition to that, Luyin Investment is 1.09 times more volatile than Zijin Mining Group. It trades about 0.0 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about 0.06 per unit of volatility. If you would invest 1,246 in Zijin Mining Group on August 25, 2024 and sell it today you would earn a total of 330.00 from holding Zijin Mining Group or generate 26.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Zijin Mining Group
Performance |
| Timeline |
| Luyin Investment |
| Zijin Mining Group |
Luyin Investment and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Zijin Mining
The main advantage of trading using opposite Luyin Investment and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment 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.| Luyin Investment vs. Zijin Mining Group | Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Shandong Gold Mining |
| Zijin Mining vs. Tongyu Communication | Zijin Mining vs. Sunwave Communications Co | Zijin Mining vs. China Sports Industry | Zijin Mining vs. Offcn Education 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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