Correlation Between Zijin Mining and Hengli Petrochemical
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By analyzing existing cross correlation between Zijin Mining Group and Hengli Petrochemical Co, you can compare the effects of market volatilities on Zijin Mining and Hengli Petrochemical 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 Hengli Petrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Hengli Petrochemical.
Diversification Opportunities for Zijin Mining and Hengli Petrochemical
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Hengli is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Hengli Petrochemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Petrochemical 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 Hengli Petrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Petrochemical has no effect on the direction of Zijin Mining i.e., Zijin Mining and Hengli Petrochemical go up and down completely randomly.
Pair Corralation between Zijin Mining and Hengli Petrochemical
Assuming the 90 days trading horizon Zijin Mining is expected to generate 10.05 times less return on investment than Hengli Petrochemical. But when comparing it to its historical volatility, Zijin Mining Group is 1.02 times less risky than Hengli Petrochemical. It trades about 0.0 of its potential returns per unit of risk. Hengli Petrochemical Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,361 in Hengli Petrochemical Co on October 26, 2024 and sell it today you would earn a total of 101.00 from holding Hengli Petrochemical Co or generate 7.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Hengli Petrochemical Co
Performance |
| Timeline |
| Zijin Mining Group |
| Hengli Petrochemical |
Zijin Mining and Hengli Petrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Hengli Petrochemical
The main advantage of trading using opposite Zijin Mining and Hengli Petrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Hengli Petrochemical 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 Hengli Petrochemical will offset losses from the drop in Hengli Petrochemical'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 |
| Hengli Petrochemical vs. Zijin Mining Group | Hengli Petrochemical vs. Wanhua Chemical Group | Hengli Petrochemical vs. Baoshan Iron Steel | Hengli Petrochemical 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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