Correlation Between Zijin Mining and Jiangxi Hengda
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By analyzing existing cross correlation between Zijin Mining Group and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Zijin Mining and Jiangxi Hengda 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 Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Jiangxi Hengda.
Diversification Opportunities for Zijin Mining and Jiangxi Hengda
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Jiangxi is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Zijin Mining i.e., Zijin Mining and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Zijin Mining and Jiangxi Hengda
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.63 times more return on investment than Jiangxi Hengda. However, Zijin Mining Group is 1.59 times less risky than Jiangxi Hengda. It trades about 0.04 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about -0.01 per unit of risk. If you would invest 1,165 in Zijin Mining Group on October 25, 2024 and sell it today you would earn a total of 423.00 from holding Zijin Mining Group or generate 36.31% 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 Hengda Hi Tech
Performance |
| Timeline |
| Zijin Mining Group |
| Jiangxi Hengda Hi |
Zijin Mining and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Jiangxi Hengda
The main advantage of trading using opposite Zijin Mining and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Jiangxi Hengda 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 Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Zijin Mining vs. Heilongjiang Publishing Media | Zijin Mining vs. Hainan Haiqi Transportation | Zijin Mining vs. Chinese Universe Publishing | Zijin Mining vs. Shenzhen Urban Transport |
| Jiangxi Hengda vs. Ye Chiu Metal | Jiangxi Hengda vs. CITIC Metal Co | Jiangxi Hengda vs. Maccura Biotechnology Co | Jiangxi Hengda vs. Chongqing Shunbo Aluminum |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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