Correlation Between Zijin Mining and Shandong Longquan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zijin Mining Group and Shandong Longquan Pipeline, you can compare the effects of market volatilities on Zijin Mining and Shandong Longquan 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 Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Shandong Longquan.
Diversification Opportunities for Zijin Mining and Shandong Longquan
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zijin and Shandong is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan 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 Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of Zijin Mining i.e., Zijin Mining and Shandong Longquan go up and down completely randomly.
Pair Corralation between Zijin Mining and Shandong Longquan
Assuming the 90 days trading horizon Zijin Mining is expected to generate 2.18 times less return on investment than Shandong Longquan. In addition to that, Zijin Mining is 1.24 times more volatile than Shandong Longquan Pipeline. It trades about 0.15 of its total potential returns per unit of risk. Shandong Longquan Pipeline is currently generating about 0.41 per unit of volatility. If you would invest 431.00 in Shandong Longquan Pipeline on November 4, 2024 and sell it today you would earn a total of 43.00 from holding Shandong Longquan Pipeline or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Shandong Longquan Pipeline
Performance |
| Timeline |
| Zijin Mining Group |
| Shandong Longquan |
Zijin Mining and Shandong Longquan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Shandong Longquan
The main advantage of trading using opposite Zijin Mining and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Shandong Longquan 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 Longquan will offset losses from the drop in Shandong Longquan's long position.| Zijin Mining vs. Chengdu Xingrong Investment | Zijin Mining vs. Metro Investment Development | Zijin Mining vs. Hubei Geoway Investment | Zijin Mining vs. Linewell Software 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |