Correlation Between Zijin Mining and Penyao Environmental
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By analyzing existing cross correlation between Zijin Mining Group and Penyao Environmental Protection, you can compare the effects of market volatilities on Zijin Mining and Penyao Environmental 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 Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Penyao Environmental.
Diversification Opportunities for Zijin Mining and Penyao Environmental
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zijin and Penyao is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental 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 Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of Zijin Mining i.e., Zijin Mining and Penyao Environmental go up and down completely randomly.
Pair Corralation between Zijin Mining and Penyao Environmental
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.59 times more return on investment than Penyao Environmental. However, Zijin Mining Group is 1.7 times less risky than Penyao Environmental. It trades about -0.02 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about -0.2 per unit of risk. If you would invest 1,612 in Zijin Mining Group on October 12, 2024 and sell it today you would lose (20.00) from holding Zijin Mining Group or give up 1.24% 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. Penyao Environmental Protectio
Performance |
| Timeline |
| Zijin Mining Group |
| Penyao Environmental |
Zijin Mining and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Penyao Environmental
The main advantage of trading using opposite Zijin Mining and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental'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 |
| Penyao Environmental vs. Zijin Mining Group | Penyao Environmental vs. Shenzhen Silver Basis | Penyao Environmental vs. AVIC Fund Management | Penyao Environmental vs. Innovative Medical Management |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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