Correlation Between Zijin Mining and Zhejiang Juhua
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By analyzing existing cross correlation between Zijin Mining Group and Zhejiang Juhua Co, you can compare the effects of market volatilities on Zijin Mining and Zhejiang Juhua 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 Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Zhejiang Juhua.
Diversification Opportunities for Zijin Mining and Zhejiang Juhua
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and Zhejiang is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua 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 Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Zijin Mining i.e., Zijin Mining and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Zijin Mining and Zhejiang Juhua
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.86 times more return on investment than Zhejiang Juhua. However, Zijin Mining Group is 1.17 times less risky than Zhejiang Juhua. It trades about 0.05 of its potential returns per unit of risk. Zhejiang Juhua Co is currently generating about 0.03 per unit of risk. If you would invest 1,027 in Zijin Mining Group on August 24, 2024 and sell it today you would earn a total of 549.00 from holding Zijin Mining Group or generate 53.46% 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. Zhejiang Juhua Co
Performance |
| Timeline |
| Zijin Mining Group |
| Zhejiang Juhua |
Zijin Mining and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Zhejiang Juhua
The main advantage of trading using opposite Zijin Mining and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Zhejiang Juhua 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 Zhejiang Juhua will offset losses from the drop in Zhejiang Juhua's long position.| Zijin Mining vs. Zhengzhou Coal Mining | Zijin Mining vs. Universal Scientific Industrial | Zijin Mining vs. Qingdao Choho Industrial | Zijin Mining vs. Rongcheer Industrial Technology |
| Zhejiang Juhua vs. Sinocat Environmental Technology | Zhejiang Juhua vs. Jinhui Liquor Co | Zhejiang Juhua vs. Zhejiang Qianjiang Motorcycle | Zhejiang Juhua vs. Beijing SPC Environment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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