Correlation Between Zijin Mining and Tongyu Communication
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By analyzing existing cross correlation between Zijin Mining Group and Tongyu Communication, you can compare the effects of market volatilities on Zijin Mining and Tongyu Communication 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 Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Tongyu Communication.
Diversification Opportunities for Zijin Mining and Tongyu Communication
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zijin and Tongyu is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication 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 Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of Zijin Mining i.e., Zijin Mining and Tongyu Communication go up and down completely randomly.
Pair Corralation between Zijin Mining and Tongyu Communication
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.62 times more return on investment than Tongyu Communication. However, Zijin Mining Group is 1.62 times less risky than Tongyu Communication. It trades about -0.01 of its potential returns per unit of risk. Tongyu Communication is currently generating about -0.19 per unit of risk. If you would invest 1,606 in Zijin Mining Group on October 11, 2024 and sell it today you would lose (14.00) from holding Zijin Mining Group or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Tongyu Communication
Performance |
| Timeline |
| Zijin Mining Group |
| Tongyu Communication |
Zijin Mining and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Tongyu Communication
The main advantage of trading using opposite Zijin Mining and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication's long position.| Zijin Mining vs. INKON Life Technology | Zijin Mining vs. Kuang Chi Technologies | Zijin Mining vs. Linktel Technologies Co | Zijin Mining vs. Holitech Technology Co |
| Tongyu Communication vs. Emdoor Information Co | Tongyu Communication vs. Konfoong Materials International | Tongyu Communication vs. Sanxiang Advanced Materials | Tongyu Communication vs. Keda Clean Energy |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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