Correlation Between Zijin Mining and Shanxi Tond
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By analyzing existing cross correlation between Zijin Mining Group and Shanxi Tond Chemical, you can compare the effects of market volatilities on Zijin Mining and Shanxi Tond 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 Shanxi Tond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Shanxi Tond.
Diversification Opportunities for Zijin Mining and Shanxi Tond
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Shanxi is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Shanxi Tond Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Tond Chemical 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 Shanxi Tond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Tond Chemical has no effect on the direction of Zijin Mining i.e., Zijin Mining and Shanxi Tond go up and down completely randomly.
Pair Corralation between Zijin Mining and Shanxi Tond
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.61 times more return on investment than Shanxi Tond. However, Zijin Mining Group is 1.64 times less risky than Shanxi Tond. It trades about 0.11 of its potential returns per unit of risk. Shanxi Tond Chemical is currently generating about -0.27 per unit of risk. If you would invest 1,557 in Zijin Mining Group on October 14, 2024 and sell it today you would earn a total of 58.00 from holding Zijin Mining Group or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Shanxi Tond Chemical
Performance |
| Timeline |
| Zijin Mining Group |
| Shanxi Tond Chemical |
Zijin Mining and Shanxi Tond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Shanxi Tond
The main advantage of trading using opposite Zijin Mining and Shanxi Tond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Shanxi Tond 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 Shanxi Tond will offset losses from the drop in Shanxi Tond's long position.| Zijin Mining vs. Allmed Medical Products | Zijin Mining vs. Guangdong Transtek Medical | Zijin Mining vs. Shanghai Rightongene Biotechnology | Zijin Mining vs. Xiangyu Medical Co |
| Shanxi Tond vs. Nanjing Vishee Medical | Shanxi Tond vs. Shenzhen MYS Environmental | Shanxi Tond vs. Tinavi Medical Technologies | Shanxi Tond vs. GreenTech Environmental 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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