Correlation Between Zijin Mining and Yingde Greatchem
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By analyzing existing cross correlation between Zijin Mining Group and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Zijin Mining and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Yingde Greatchem.
Diversification Opportunities for Zijin Mining and Yingde Greatchem
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and Yingde is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Zijin Mining i.e., Zijin Mining and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Zijin Mining and Yingde Greatchem
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.66 times more return on investment than Yingde Greatchem. However, Zijin Mining Group is 1.52 times less risky than Yingde Greatchem. It trades about 0.05 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about -0.02 per unit of risk. If you would invest 1,027 in Zijin Mining Group on August 25, 2024 and sell it today you would earn a total of 549.00 from holding Zijin Mining Group or generate 53.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 71.97% |
| Values | Daily Returns |
Zijin Mining Group vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Zijin Mining Group |
| Yingde Greatchem Che |
Zijin Mining and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Yingde Greatchem
The main advantage of trading using opposite Zijin Mining and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem's long position.| Zijin Mining vs. Tongyu Communication | Zijin Mining vs. Sunwave Communications Co | Zijin Mining vs. China Sports Industry | Zijin Mining vs. Offcn Education Technology |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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