Correlation Between Zijin Mining and Guangxi Guitang
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By analyzing existing cross correlation between Zijin Mining Group and Guangxi Guitang Group, you can compare the effects of market volatilities on Zijin Mining and Guangxi Guitang 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 Guangxi Guitang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Guangxi Guitang.
Diversification Opportunities for Zijin Mining and Guangxi Guitang
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Guangxi is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Guangxi Guitang Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Guitang Group 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 Guangxi Guitang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Guitang Group has no effect on the direction of Zijin Mining i.e., Zijin Mining and Guangxi Guitang go up and down completely randomly.
Pair Corralation between Zijin Mining and Guangxi Guitang
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Guangxi Guitang. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 5.27 times less risky than Guangxi Guitang. The stock trades about -0.06 of its potential returns per unit of risk. The Guangxi Guitang Group is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 787.00 in Guangxi Guitang Group on September 12, 2024 and sell it today you would earn a total of 615.00 from holding Guangxi Guitang Group or generate 78.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Guangxi Guitang Group
Performance |
| Timeline |
| Zijin Mining Group |
| Guangxi Guitang Group |
Zijin Mining and Guangxi Guitang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Guangxi Guitang
The main advantage of trading using opposite Zijin Mining and Guangxi Guitang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Guangxi Guitang 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 Guangxi Guitang will offset losses from the drop in Guangxi Guitang's long position.| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Hoshine Silicon Ind |
| Guangxi Guitang vs. Hubei Dinglong Chemical | Guangxi Guitang vs. Yangmei Chemical Co | Guangxi Guitang vs. Jinhui Liquor Co | Guangxi Guitang vs. Beijing Sanyuan Foods |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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