Correlation Between Zijin Mining and China Merchants
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zijin Mining Group and China Merchants Bank, you can compare the effects of market volatilities on Zijin Mining and China Merchants 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 China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and China Merchants.
Diversification Opportunities for Zijin Mining and China Merchants
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and China Merchants Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Bank 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 China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Bank has no effect on the direction of Zijin Mining i.e., Zijin Mining and China Merchants go up and down completely randomly.
Pair Corralation between Zijin Mining and China Merchants
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 1.33 times more return on investment than China Merchants. However, Zijin Mining is 1.33 times more volatile than China Merchants Bank. It trades about 0.07 of its potential returns per unit of risk. China Merchants Bank is currently generating about 0.08 per unit of risk. If you would invest 1,167 in Zijin Mining Group on September 4, 2024 and sell it today you would earn a total of 394.00 from holding Zijin Mining Group or generate 33.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. China Merchants Bank
Performance |
| Timeline |
| Zijin Mining Group |
| China Merchants Bank |
Zijin Mining and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and China Merchants
The main advantage of trading using opposite Zijin Mining and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Shandong Gold Mining |
| China Merchants vs. Dymatic Chemicals | China Merchants vs. JCHX Mining Management | China Merchants vs. Zijin Mining Group | China Merchants vs. Jinhui Mining 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |