Correlation Between Zijin Mining and Shenzhen Noposion
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By analyzing existing cross correlation between Zijin Mining Group and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Zijin Mining and Shenzhen Noposion 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 Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Shenzhen Noposion.
Diversification Opportunities for Zijin Mining and Shenzhen Noposion
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Shenzhen is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Zijin Mining i.e., Zijin Mining and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Zijin Mining and Shenzhen Noposion
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Shenzhen Noposion. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.42 times less risky than Shenzhen Noposion. The stock trades about -0.04 of its potential returns per unit of risk. The Shenzhen Noposion Agrochemicals is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 797.00 in Shenzhen Noposion Agrochemicals on August 25, 2024 and sell it today you would earn a total of 152.00 from holding Shenzhen Noposion Agrochemicals or generate 19.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zijin Mining Group vs. Shenzhen Noposion Agrochemical
Performance |
Timeline |
Zijin Mining Group |
Shenzhen Noposion |
Zijin Mining and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zijin Mining and Shenzhen Noposion
The main advantage of trading using opposite Zijin Mining and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.Zijin Mining vs. Tongyu Communication | Zijin Mining vs. Sunwave Communications Co | Zijin Mining vs. China Sports Industry | Zijin Mining vs. Offcn Education Technology |
Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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