Correlation Between Zijin Mining and North Huajin
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By analyzing existing cross correlation between Zijin Mining Group and North Huajin Chemical, you can compare the effects of market volatilities on Zijin Mining and North Huajin 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 Zijin Mining with a short position of North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and North Huajin.
Diversification Opportunities for Zijin Mining and North Huajin
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and North is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical and Zijin Mining 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 Zijin Mining Group are associated (or correlated) with North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of Zijin Mining i.e., Zijin Mining and North Huajin go up and down completely randomly.
Pair Corralation between Zijin Mining and North Huajin
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 1.1 times more return on investment than North Huajin. However, Zijin Mining is 1.1 times more volatile than North Huajin Chemical. It trades about 0.22 of its potential returns per unit of risk. North Huajin Chemical is currently generating about -0.22 per unit of risk. If you would invest 1,518 in Zijin Mining Group on November 3, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. North Huajin Chemical
Performance |
| Timeline |
| Zijin Mining Group |
| North Huajin Chemical |
Zijin Mining and North Huajin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and North Huajin
The main advantage of trading using opposite Zijin Mining and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.| Zijin Mining vs. Fiberhome Telecommunication Technologies | Zijin Mining vs. Tongyu Communication | Zijin Mining vs. Changjiang Publishing Media | Zijin Mining vs. Allwin Telecommunication Co |
| North Huajin vs. Xiamen Goldenhome Co | North Huajin vs. Beijing Kingsoft Office | North Huajin vs. Zhangjiagang Elegant Home | North Huajin vs. Mengtian Home Group |
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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