Correlation Between Aluminum Corp and Zijin Mining
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By analyzing existing cross correlation between Aluminum Corp of and Zijin Mining Group, you can compare the effects of market volatilities on Aluminum Corp 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 Aluminum Corp with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Zijin Mining.
Diversification Opportunities for Aluminum Corp and Zijin Mining
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aluminum and Zijin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of 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 Aluminum Corp 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 Aluminum Corp of 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 Aluminum Corp i.e., Aluminum Corp and Zijin Mining go up and down completely randomly.
Pair Corralation between Aluminum Corp and Zijin Mining
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 1.21 times more return on investment than Zijin Mining. However, Aluminum Corp is 1.21 times more volatile than Zijin Mining Group. It trades about 0.07 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.07 per unit of risk. If you would invest 523.00 in Aluminum Corp of on September 4, 2024 and sell it today you would earn a total of 236.00 from holding Aluminum Corp of or generate 45.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Zijin Mining Group
Performance |
| Timeline |
| Aluminum Corp |
| Zijin Mining Group |
Aluminum Corp and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Zijin Mining
The main advantage of trading using opposite Aluminum Corp and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp 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.| Aluminum Corp vs. Zijin Mining Group | Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Baoshan Iron Steel | Aluminum Corp 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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