Correlation Between Zijin Mining and Sichuan Qiaoyuan
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By analyzing existing cross correlation between Zijin Mining Group and Sichuan Qiaoyuan Gas, you can compare the effects of market volatilities on Zijin Mining and Sichuan Qiaoyuan 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 Sichuan Qiaoyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Sichuan Qiaoyuan.
Diversification Opportunities for Zijin Mining and Sichuan Qiaoyuan
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zijin and Sichuan is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Sichuan Qiaoyuan Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Qiaoyuan Gas 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 Sichuan Qiaoyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Qiaoyuan Gas has no effect on the direction of Zijin Mining i.e., Zijin Mining and Sichuan Qiaoyuan go up and down completely randomly.
Pair Corralation between Zijin Mining and Sichuan Qiaoyuan
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.75 times more return on investment than Sichuan Qiaoyuan. However, Zijin Mining Group is 1.34 times less risky than Sichuan Qiaoyuan. It trades about 0.07 of its potential returns per unit of risk. Sichuan Qiaoyuan Gas is currently generating about -0.12 per unit of risk. If you would invest 1,552 in Zijin Mining Group on October 26, 2024 and sell it today you would earn a total of 36.00 from holding Zijin Mining Group or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Sichuan Qiaoyuan Gas
Performance |
| Timeline |
| Zijin Mining Group |
| Sichuan Qiaoyuan Gas |
Zijin Mining and Sichuan Qiaoyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Sichuan Qiaoyuan
The main advantage of trading using opposite Zijin Mining and Sichuan Qiaoyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Sichuan Qiaoyuan 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 Sichuan Qiaoyuan will offset losses from the drop in Sichuan Qiaoyuan's long position.| Zijin Mining vs. Heilongjiang Publishing Media | Zijin Mining vs. Hainan Haiqi Transportation | Zijin Mining vs. Chinese Universe Publishing | Zijin Mining vs. Shenzhen Urban Transport |
| Sichuan Qiaoyuan vs. Zijin Mining Group | Sichuan Qiaoyuan vs. Wanhua Chemical Group | Sichuan Qiaoyuan vs. Baoshan Iron Steel | Sichuan Qiaoyuan 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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