Correlation Between Zijin Mining and Jinsanjiang Silicon
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By analyzing existing cross correlation between Zijin Mining Group and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Zijin Mining and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Jinsanjiang Silicon.
Diversification Opportunities for Zijin Mining and Jinsanjiang Silicon
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Jinsanjiang is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Zijin Mining i.e., Zijin Mining and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Zijin Mining and Jinsanjiang Silicon
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.58 times more return on investment than Jinsanjiang Silicon. However, Zijin Mining Group is 1.72 times less risky than Jinsanjiang Silicon. It trades about 0.05 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.02 per unit of risk. If you would invest 1,016 in Zijin Mining Group on September 2, 2024 and sell it today you would earn a total of 554.00 from holding Zijin Mining Group or generate 54.53% 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. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Zijin Mining Group |
| Jinsanjiang Silicon |
Zijin Mining and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Jinsanjiang Silicon
The main advantage of trading using opposite Zijin Mining and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon'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 |
| Jinsanjiang Silicon vs. Hefei Metalforming Mach | Jinsanjiang Silicon vs. Shanghai Shuixing Home | Jinsanjiang Silicon vs. Suofeiya Home Collection | Jinsanjiang Silicon vs. Mengtian Home Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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