Correlation Between Zijin Mining and Shandong Sino-Agri
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By analyzing existing cross correlation between Zijin Mining Group and Shandong Sino Agri United, you can compare the effects of market volatilities on Zijin Mining and Shandong Sino-Agri 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 Sino-Agri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Shandong Sino-Agri.
Diversification Opportunities for Zijin Mining and Shandong Sino-Agri
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Shandong is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Shandong Sino Agri United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sino Agri 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 Sino-Agri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sino Agri has no effect on the direction of Zijin Mining i.e., Zijin Mining and Shandong Sino-Agri go up and down completely randomly.
Pair Corralation between Zijin Mining and Shandong Sino-Agri
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Shandong Sino-Agri. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 2.23 times less risky than Shandong Sino-Agri. The stock trades about -0.17 of its potential returns per unit of risk. The Shandong Sino Agri United is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,409 in Shandong Sino Agri United on September 1, 2024 and sell it today you would earn a total of 388.00 from holding Shandong Sino Agri United or generate 27.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Shandong Sino Agri United
Performance |
| Timeline |
| Zijin Mining Group |
| Shandong Sino Agri |
Zijin Mining and Shandong Sino-Agri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Shandong Sino-Agri
The main advantage of trading using opposite Zijin Mining and Shandong Sino-Agri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Shandong Sino-Agri 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 Sino-Agri will offset losses from the drop in Shandong Sino-Agri's long position.| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co |
| Shandong Sino-Agri vs. Zijin Mining Group | Shandong Sino-Agri vs. Wanhua Chemical Group | Shandong Sino-Agri vs. Baoshan Iron Steel | Shandong Sino-Agri 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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