Correlation Between Zijin Mining and Jahen Household
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By analyzing existing cross correlation between Zijin Mining Group and Jahen Household Products, you can compare the effects of market volatilities on Zijin Mining and Jahen Household 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 Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Jahen Household.
Diversification Opportunities for Zijin Mining and Jahen Household
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Jahen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Jahen Household Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahen Household Products 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 Jahen Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahen Household Products has no effect on the direction of Zijin Mining i.e., Zijin Mining and Jahen Household go up and down completely randomly.
Pair Corralation between Zijin Mining and Jahen Household
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Jahen Household. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.55 times less risky than Jahen Household. The stock trades about -0.25 of its potential returns per unit of risk. The Jahen Household Products is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,572 in Jahen Household Products on August 29, 2024 and sell it today you would lose (22.00) from holding Jahen Household Products or give up 1.4% 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. Jahen Household Products
Performance |
| Timeline |
| Zijin Mining Group |
| Jahen Household Products |
Zijin Mining and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Jahen Household
The main advantage of trading using opposite Zijin Mining and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Jahen Household 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 Jahen Household will offset losses from the drop in Jahen Household'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 |
| Jahen Household vs. Youyou Foods Co | Jahen Household vs. Zhongyin Babi Food | Jahen Household vs. Yankershop Food Co | Jahen Household vs. HaiXin Foods Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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