Correlation Between Zijin Mining and Beijing Kaiwen
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By analyzing existing cross correlation between Zijin Mining Group and Beijing Kaiwen Education, you can compare the effects of market volatilities on Zijin Mining and Beijing Kaiwen 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 Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Beijing Kaiwen.
Diversification Opportunities for Zijin Mining and Beijing Kaiwen
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Beijing is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Zijin Mining i.e., Zijin Mining and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Zijin Mining and Beijing Kaiwen
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.44 times more return on investment than Beijing Kaiwen. However, Zijin Mining Group is 2.29 times less risky than Beijing Kaiwen. It trades about 0.16 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about -0.45 per unit of risk. If you would invest 1,535 in Zijin Mining Group on October 15, 2024 and sell it today you would earn a total of 80.00 from holding Zijin Mining Group or generate 5.21% 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. Beijing Kaiwen Education
Performance |
| Timeline |
| Zijin Mining Group |
| Beijing Kaiwen Education |
Zijin Mining and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Beijing Kaiwen
The main advantage of trading using opposite Zijin Mining and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Zijin Mining vs. Shuhua Sports Co | Zijin Mining vs. Advanced Technology Materials | Zijin Mining vs. King Strong New Material | Zijin Mining vs. Cansino Biologics |
| Beijing Kaiwen vs. Qumei Furniture Group | Beijing Kaiwen vs. Mengtian Home Group | Beijing Kaiwen vs. Hengli Industrial Development | Beijing Kaiwen vs. Suzhou Industrial Park |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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