Correlation Between Zijin Mining and Jiangxi Copper
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By analyzing existing cross correlation between Zijin Mining Group and Jiangxi Copper Co, you can compare the effects of market volatilities on Zijin Mining and Jiangxi Copper 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 Jiangxi Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Jiangxi Copper.
Diversification Opportunities for Zijin Mining and Jiangxi Copper
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zijin and Jiangxi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Jiangxi Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Copper 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 Jiangxi Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Copper has no effect on the direction of Zijin Mining i.e., Zijin Mining and Jiangxi Copper go up and down completely randomly.
Pair Corralation between Zijin Mining and Jiangxi Copper
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Jiangxi Copper. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.04 times less risky than Jiangxi Copper. The stock trades about -0.26 of its potential returns per unit of risk. The Jiangxi Copper Co is currently generating about -0.23 of returns per unit of risk over similar time horizon. If you would invest 2,326 in Jiangxi Copper Co on August 28, 2024 and sell it today you would lose (211.00) from holding Jiangxi Copper Co or give up 9.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Jiangxi Copper Co
Performance |
| Timeline |
| Zijin Mining Group |
| Jiangxi Copper |
Zijin Mining and Jiangxi Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Jiangxi Copper
The main advantage of trading using opposite Zijin Mining and Jiangxi Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Jiangxi Copper 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 Jiangxi Copper will offset losses from the drop in Jiangxi Copper's long position.| Zijin Mining vs. Sichuan Fulin Transportation | Zijin Mining vs. Jiangsu Yanghe Brewery | Zijin Mining vs. Broadex Technologies Co | Zijin Mining vs. Haima Automobile Group |
| Jiangxi Copper vs. Wanhua Chemical Group | Jiangxi Copper vs. Shandong Gold Mining | Jiangxi Copper vs. Rongsheng Petrochemical Co | Jiangxi Copper vs. Inner Mongolia BaoTou |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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