Correlation Between Zijin Mining and Shandong Iron
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By analyzing existing cross correlation between Zijin Mining Group and Shandong Iron and, you can compare the effects of market volatilities on Zijin Mining and Shandong Iron 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 Shandong Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Shandong Iron.
Diversification Opportunities for Zijin Mining and Shandong Iron
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zijin and Shandong is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Shandong Iron and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Iron 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 Shandong Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Iron has no effect on the direction of Zijin Mining i.e., Zijin Mining and Shandong Iron go up and down completely randomly.
Pair Corralation between Zijin Mining and Shandong Iron
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.92 times more return on investment than Shandong Iron. However, Zijin Mining Group is 1.09 times less risky than Shandong Iron. It trades about 0.13 of its potential returns per unit of risk. Shandong Iron and is currently generating about -0.14 per unit of risk. If you would invest 1,554 in Zijin Mining Group on October 30, 2024 and sell it today you would earn a total of 70.00 from holding Zijin Mining Group or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Shandong Iron and
Performance |
| Timeline |
| Zijin Mining Group |
| Shandong Iron |
Zijin Mining and Shandong Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Shandong Iron
The main advantage of trading using opposite Zijin Mining and Shandong Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Shandong Iron 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 Shandong Iron will offset losses from the drop in Shandong Iron's long position.| Zijin Mining vs. Porton Fine Chemicals | Zijin Mining vs. Eyebright Medical Technology | Zijin Mining vs. ROPEOK Technology Group | Zijin Mining vs. Sinofibers Technology Co |
| Shandong Iron vs. Zijin Mining Group | Shandong Iron vs. Wanhua Chemical Group | Shandong Iron vs. Baoshan Iron Steel | Shandong Iron 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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