Correlation Between Zijin Mining and Yunnan Aluminium
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By analyzing existing cross correlation between Zijin Mining Group and Yunnan Aluminium Co, you can compare the effects of market volatilities on Zijin Mining and Yunnan Aluminium 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 Yunnan Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Yunnan Aluminium.
Diversification Opportunities for Zijin Mining and Yunnan Aluminium
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and Yunnan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Yunnan Aluminium Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Aluminium 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 Yunnan Aluminium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Aluminium has no effect on the direction of Zijin Mining i.e., Zijin Mining and Yunnan Aluminium go up and down completely randomly.
Pair Corralation between Zijin Mining and Yunnan Aluminium
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.87 times more return on investment than Yunnan Aluminium. However, Zijin Mining Group is 1.15 times less risky than Yunnan Aluminium. It trades about 0.05 of its potential returns per unit of risk. Yunnan Aluminium Co is currently generating about 0.03 per unit of risk. If you would invest 1,027 in Zijin Mining Group on August 24, 2024 and sell it today you would earn a total of 549.00 from holding Zijin Mining Group or generate 53.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Yunnan Aluminium Co
Performance |
| Timeline |
| Zijin Mining Group |
| Yunnan Aluminium |
Zijin Mining and Yunnan Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Yunnan Aluminium
The main advantage of trading using opposite Zijin Mining and Yunnan Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Yunnan Aluminium 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 Yunnan Aluminium will offset losses from the drop in Yunnan Aluminium's long position.| Zijin Mining vs. Zhengzhou Coal Mining | Zijin Mining vs. Universal Scientific Industrial | Zijin Mining vs. Qingdao Choho Industrial | Zijin Mining vs. Rongcheer Industrial Technology |
| Yunnan Aluminium vs. Zhejiang Kingland Pipeline | Yunnan Aluminium vs. Xiangyang Automobile Bearing | Yunnan Aluminium vs. China Publishing Media | Yunnan Aluminium vs. Chinese Universe Publishing |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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