Correlation Between Zijin Mining and Tongling Nonferrous
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By analyzing existing cross correlation between Zijin Mining Group and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Zijin Mining and Tongling Nonferrous 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 Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Tongling Nonferrous.
Diversification Opportunities for Zijin Mining and Tongling Nonferrous
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zijin and Tongling is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous 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 Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Zijin Mining i.e., Zijin Mining and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Zijin Mining and Tongling Nonferrous
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Tongling Nonferrous. In addition to that, Zijin Mining is 1.19 times more volatile than Tongling Nonferrous Metals. It trades about -0.25 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about -0.2 per unit of volatility. If you would invest 352.00 in Tongling Nonferrous Metals on September 2, 2024 and sell it today you would lose (22.00) from holding Tongling Nonferrous Metals or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Zijin Mining Group |
| Tongling Nonferrous |
Zijin Mining and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Tongling Nonferrous
The main advantage of trading using opposite Zijin Mining and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co |
| Tongling Nonferrous vs. Zijin Mining Group | Tongling Nonferrous vs. Wanhua Chemical Group | Tongling Nonferrous vs. Baoshan Iron Steel | Tongling Nonferrous 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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