Correlation Between Zijin Mining and Shenyang Chemical
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By analyzing existing cross correlation between Zijin Mining Group and Shenyang Chemical Industry, you can compare the effects of market volatilities on Zijin Mining and Shenyang Chemical 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 Shenyang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Shenyang Chemical.
Diversification Opportunities for Zijin Mining and Shenyang Chemical
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zijin and Shenyang is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Shenyang Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang 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 Shenyang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Chemical has no effect on the direction of Zijin Mining i.e., Zijin Mining and Shenyang Chemical go up and down completely randomly.
Pair Corralation between Zijin Mining and Shenyang Chemical
Assuming the 90 days trading horizon Zijin Mining is expected to generate 18.24 times less return on investment than Shenyang Chemical. But when comparing it to its historical volatility, Zijin Mining Group is 1.42 times less risky than Shenyang Chemical. It trades about 0.02 of its potential returns per unit of risk. Shenyang Chemical Industry is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 263.00 in Shenyang Chemical Industry on September 2, 2024 and sell it today you would earn a total of 106.00 from holding Shenyang Chemical Industry or generate 40.3% 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. Shenyang Chemical Industry
Performance |
| Timeline |
| Zijin Mining Group |
| Shenyang Chemical |
Zijin Mining and Shenyang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Shenyang Chemical
The main advantage of trading using opposite Zijin Mining and Shenyang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Shenyang Chemical 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 Shenyang Chemical will offset losses from the drop in Shenyang Chemical's 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 |
| Shenyang Chemical vs. Zijin Mining Group | Shenyang Chemical vs. Wanhua Chemical Group | Shenyang Chemical vs. Baoshan Iron Steel | Shenyang Chemical 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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