Correlation Between Zijin Mining and China Minmetals
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By analyzing existing cross correlation between Zijin Mining Group and China Minmetals Rare, you can compare the effects of market volatilities on Zijin Mining and China Minmetals 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 China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and China Minmetals.
Diversification Opportunities for Zijin Mining and China Minmetals
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zijin and China is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and China Minmetals Rare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minmetals Rare 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 China Minmetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minmetals Rare has no effect on the direction of Zijin Mining i.e., Zijin Mining and China Minmetals go up and down completely randomly.
Pair Corralation between Zijin Mining and China Minmetals
Assuming the 90 days trading horizon Zijin Mining is expected to generate 19.04 times less return on investment than China Minmetals. But when comparing it to its historical volatility, Zijin Mining Group is 1.63 times less risky than China Minmetals. It trades about 0.02 of its potential returns per unit of risk. China Minmetals Rare is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,188 in China Minmetals Rare on September 2, 2024 and sell it today you would earn a total of 902.00 from holding China Minmetals Rare or generate 41.22% 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. China Minmetals Rare
Performance |
| Timeline |
| Zijin Mining Group |
| China Minmetals Rare |
Zijin Mining and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and China Minmetals
The main advantage of trading using opposite Zijin Mining and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, China Minmetals 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 China Minmetals will offset losses from the drop in China Minmetals' 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 |
| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals 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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