Correlation Between Zijin Mining and Guangdong Sanhe
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By analyzing existing cross correlation between Zijin Mining Group and Guangdong Sanhe Pile, you can compare the effects of market volatilities on Zijin Mining and Guangdong Sanhe 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 Guangdong Sanhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Guangdong Sanhe.
Diversification Opportunities for Zijin Mining and Guangdong Sanhe
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zijin and Guangdong is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Guangdong Sanhe Pile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Sanhe Pile 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 Guangdong Sanhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Sanhe Pile has no effect on the direction of Zijin Mining i.e., Zijin Mining and Guangdong Sanhe go up and down completely randomly.
Pair Corralation between Zijin Mining and Guangdong Sanhe
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.34 times more return on investment than Guangdong Sanhe. However, Zijin Mining Group is 2.9 times less risky than Guangdong Sanhe. It trades about 0.15 of its potential returns per unit of risk. Guangdong Sanhe Pile is currently generating about -0.06 per unit of risk. If you would invest 1,532 in Zijin Mining Group on October 20, 2024 and sell it today you would earn a total of 95.00 from holding Zijin Mining Group or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Guangdong Sanhe Pile
Performance |
| Timeline |
| Zijin Mining Group |
| Guangdong Sanhe Pile |
Zijin Mining and Guangdong Sanhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Guangdong Sanhe
The main advantage of trading using opposite Zijin Mining and Guangdong Sanhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Guangdong Sanhe 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 Guangdong Sanhe will offset losses from the drop in Guangdong Sanhe's long position.| Zijin Mining vs. Eastern Communications Co | Zijin Mining vs. Xiangyang Automobile Bearing | Zijin Mining vs. Iat Automobile Technology | Zijin Mining vs. Nanjing Putian Telecommunications |
| Guangdong Sanhe vs. Zijin Mining Group | Guangdong Sanhe vs. Wanhua Chemical Group | Guangdong Sanhe vs. Baoshan Iron Steel | Guangdong Sanhe vs. Shandong Gold Mining |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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