Correlation Between Zijin Mining and Cofco Biochemical
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By analyzing existing cross correlation between Zijin Mining Group and Cofco Biochemical Anhui, you can compare the effects of market volatilities on Zijin Mining and Cofco Biochemical 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 Cofco Biochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Cofco Biochemical.
Diversification Opportunities for Zijin Mining and Cofco Biochemical
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and Cofco is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Cofco Biochemical Anhui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cofco Biochemical Anhui 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 Cofco Biochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cofco Biochemical Anhui has no effect on the direction of Zijin Mining i.e., Zijin Mining and Cofco Biochemical go up and down completely randomly.
Pair Corralation between Zijin Mining and Cofco Biochemical
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Cofco Biochemical. In addition to that, Zijin Mining is 1.04 times more volatile than Cofco Biochemical Anhui. It trades about -0.28 of its total potential returns per unit of risk. Cofco Biochemical Anhui is currently generating about 0.16 per unit of volatility. If you would invest 573.00 in Cofco Biochemical Anhui on September 4, 2024 and sell it today you would earn a total of 32.00 from holding Cofco Biochemical Anhui or generate 5.58% 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. Cofco Biochemical Anhui
Performance |
| Timeline |
| Zijin Mining Group |
| Cofco Biochemical Anhui |
Zijin Mining and Cofco Biochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Cofco Biochemical
The main advantage of trading using opposite Zijin Mining and Cofco Biochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Cofco Biochemical 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 Cofco Biochemical will offset losses from the drop in Cofco Biochemical's long position.| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Shandong Gold Mining |
| Cofco Biochemical vs. Zijin Mining Group | Cofco Biochemical vs. Wanhua Chemical Group | Cofco Biochemical vs. Baoshan Iron Steel | Cofco Biochemical vs. Rongsheng Petrochemical Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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