Correlation Between Zijin Mining and Hubei Xingfa
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By analyzing existing cross correlation between Zijin Mining Group and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Zijin Mining and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Hubei Xingfa.
Diversification Opportunities for Zijin Mining and Hubei Xingfa
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Hubei is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Zijin Mining i.e., Zijin Mining and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Zijin Mining and Hubei Xingfa
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.89 times more return on investment than Hubei Xingfa. However, Zijin Mining Group is 1.12 times less risky than Hubei Xingfa. It trades about 0.05 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about 0.02 per unit of risk. If you would invest 1,151 in Zijin Mining Group on September 1, 2024 and sell it today you would earn a total of 419.00 from holding Zijin Mining Group or generate 36.4% 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. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Zijin Mining Group |
| Hubei Xingfa Chemicals |
Zijin Mining and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Hubei Xingfa
The main advantage of trading using opposite Zijin Mining and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa'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 |
| Hubei Xingfa vs. Zijin Mining Group | Hubei Xingfa vs. Wanhua Chemical Group | Hubei Xingfa vs. Baoshan Iron Steel | Hubei Xingfa 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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