Correlation Between Zijin Mining and Shandong Mining
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By analyzing existing cross correlation between Zijin Mining Group and Shandong Mining Machinery, you can compare the effects of market volatilities on Zijin Mining and Shandong Mining 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 Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Shandong Mining.
Diversification Opportunities for Zijin Mining and Shandong Mining
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and Shandong is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery 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 Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Zijin Mining i.e., Zijin Mining and Shandong Mining go up and down completely randomly.
Pair Corralation between Zijin Mining and Shandong Mining
Assuming the 90 days trading horizon Zijin Mining is expected to generate 1.66 times less return on investment than Shandong Mining. But when comparing it to its historical volatility, Zijin Mining Group is 1.54 times less risky than Shandong Mining. It trades about 0.05 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 276.00 in Shandong Mining Machinery on September 4, 2024 and sell it today you would earn a total of 120.00 from holding Shandong Mining Machinery or generate 43.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Shandong Mining Machinery
Performance |
| Timeline |
| Zijin Mining Group |
| Shandong Mining Machinery |
Zijin Mining and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Shandong Mining
The main advantage of trading using opposite Zijin Mining and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Shandong Mining 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 Shandong Mining will offset losses from the drop in Shandong Mining'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 |
| Shandong Mining vs. Xinjiang Communications Construction | Shandong Mining vs. Nanjing Putian Telecommunications | Shandong Mining vs. Jonjee Hi tech Industrial | Shandong Mining vs. Zoje Resources Investment |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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