Correlation Between Zijin Mining and Jiangxi Ganfeng
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By analyzing existing cross correlation between Zijin Mining Group and Jiangxi Ganfeng Lithium, you can compare the effects of market volatilities on Zijin Mining and Jiangxi Ganfeng 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 Jiangxi Ganfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Jiangxi Ganfeng.
Diversification Opportunities for Zijin Mining and Jiangxi Ganfeng
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Jiangxi is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Jiangxi Ganfeng Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Ganfeng Lithium 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 Jiangxi Ganfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Ganfeng Lithium has no effect on the direction of Zijin Mining i.e., Zijin Mining and Jiangxi Ganfeng go up and down completely randomly.
Pair Corralation between Zijin Mining and Jiangxi Ganfeng
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.85 times more return on investment than Jiangxi Ganfeng. However, Zijin Mining Group is 1.17 times less risky than Jiangxi Ganfeng. It trades about 0.22 of its potential returns per unit of risk. Jiangxi Ganfeng Lithium is currently generating about -0.07 per unit of risk. If you would invest 1,518 in Zijin Mining Group on November 2, 2024 and sell it today you would earn a total of 106.00 from holding Zijin Mining Group or generate 6.98% 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. Jiangxi Ganfeng Lithium
Performance |
| Timeline |
| Zijin Mining Group |
| Jiangxi Ganfeng Lithium |
Zijin Mining and Jiangxi Ganfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Jiangxi Ganfeng
The main advantage of trading using opposite Zijin Mining and Jiangxi Ganfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Jiangxi Ganfeng 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 Jiangxi Ganfeng will offset losses from the drop in Jiangxi Ganfeng's long position.| Zijin Mining vs. CICT Mobile Communication | Zijin Mining vs. Queclink Wireless Solutions | Zijin Mining vs. Nantong JiangTian Chemical | Zijin Mining vs. Guangxi Wuzhou Communications |
| Jiangxi Ganfeng vs. Tangel Publishing | Jiangxi Ganfeng vs. Jiahe Foods Industry | Jiangxi Ganfeng vs. Anji Foodstuff Co | Jiangxi Ganfeng vs. Zhejiang Huatong Meat |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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