Correlation Between Zijin Mining and Hubei Forbon
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By analyzing existing cross correlation between Zijin Mining Group and Hubei Forbon Technology, you can compare the effects of market volatilities on Zijin Mining and Hubei Forbon 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 Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Hubei Forbon.
Diversification Opportunities for Zijin Mining and Hubei Forbon
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Hubei is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon Technology 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 Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of Zijin Mining i.e., Zijin Mining and Hubei Forbon go up and down completely randomly.
Pair Corralation between Zijin Mining and Hubei Forbon
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Hubei Forbon. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.58 times less risky than Hubei Forbon. The stock trades about -0.25 of its potential returns per unit of risk. The Hubei Forbon Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 831.00 in Hubei Forbon Technology on August 28, 2024 and sell it today you would lose (6.00) from holding Hubei Forbon Technology or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Hubei Forbon Technology
Performance |
| Timeline |
| Zijin Mining Group |
| Hubei Forbon Technology |
Zijin Mining and Hubei Forbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Hubei Forbon
The main advantage of trading using opposite Zijin Mining and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Hubei Forbon 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 Hubei Forbon will offset losses from the drop in Hubei Forbon's long position.| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Inner Mongolia BaoTou |
| Hubei Forbon vs. Zijin Mining Group | Hubei Forbon vs. Wanhua Chemical Group | Hubei Forbon vs. Baoshan Iron Steel | Hubei Forbon 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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