Correlation Between Zijin Mining and Jiangxi Naipu
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By analyzing existing cross correlation between Zijin Mining Group and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Zijin Mining and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Jiangxi Naipu.
Diversification Opportunities for Zijin Mining and Jiangxi Naipu
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Jiangxi is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Zijin Mining i.e., Zijin Mining and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Zijin Mining and Jiangxi Naipu
Assuming the 90 days trading horizon Zijin Mining is expected to generate 2.23 times less return on investment than Jiangxi Naipu. But when comparing it to its historical volatility, Zijin Mining Group is 1.66 times less risky than Jiangxi Naipu. It trades about 0.11 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,225 in Jiangxi Naipu Mining on September 12, 2024 and sell it today you would earn a total of 710.00 from holding Jiangxi Naipu Mining or generate 31.91% 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. Jiangxi Naipu Mining
Performance |
| Timeline |
| Zijin Mining Group |
| Jiangxi Naipu Mining |
Zijin Mining and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Jiangxi Naipu
The main advantage of trading using opposite Zijin Mining and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu'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 |
| Jiangxi Naipu vs. Tonghua Grape Wine | Jiangxi Naipu vs. Hang Xiao Steel | Jiangxi Naipu vs. Beijing SPC Environment | Jiangxi Naipu vs. Panda Financial Holding |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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