Correlation Between Zijin Mining and Jiangxi Selon
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By analyzing existing cross correlation between Zijin Mining Group and Jiangxi Selon Industrial, you can compare the effects of market volatilities on Zijin Mining and Jiangxi Selon 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 Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Jiangxi Selon.
Diversification Opportunities for Zijin Mining and Jiangxi Selon
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Jiangxi is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Jiangxi Selon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Selon Industrial 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 Selon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Selon Industrial has no effect on the direction of Zijin Mining i.e., Zijin Mining and Jiangxi Selon go up and down completely randomly.
Pair Corralation between Zijin Mining and Jiangxi Selon
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.65 times more return on investment than Jiangxi Selon. However, Zijin Mining Group is 1.54 times less risky than Jiangxi Selon. It trades about 0.05 of its potential returns per unit of risk. Jiangxi Selon Industrial is currently generating about -0.02 per unit of risk. If you would invest 1,029 in Zijin Mining Group on September 4, 2024 and sell it today you would earn a total of 527.00 from holding Zijin Mining Group or generate 51.21% 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. Jiangxi Selon Industrial
Performance |
| Timeline |
| Zijin Mining Group |
| Jiangxi Selon Industrial |
Zijin Mining and Jiangxi Selon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Jiangxi Selon
The main advantage of trading using opposite Zijin Mining and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Jiangxi Selon 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 Selon will offset losses from the drop in Jiangxi Selon'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 |
| Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Wanhua Chemical Group | Jiangxi Selon vs. Baoshan Iron Steel | Jiangxi Selon vs. Rongsheng Petrochemical 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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