Correlation Between Zijin Mining and Hubei Geoway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zijin Mining Group and Hubei Geoway Investment, you can compare the effects of market volatilities on Zijin Mining and Hubei Geoway 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 Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Hubei Geoway.
Diversification Opportunities for Zijin Mining and Hubei Geoway
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Hubei is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Zijin Mining i.e., Zijin Mining and Hubei Geoway go up and down completely randomly.
Pair Corralation between Zijin Mining and Hubei Geoway
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Hubei Geoway. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 2.09 times less risky than Hubei Geoway. The stock trades about -0.07 of its potential returns per unit of risk. The Hubei Geoway Investment is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 147.00 in Hubei Geoway Investment on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Hubei Geoway Investment or generate 0.0% 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. Hubei Geoway Investment
Performance |
| Timeline |
| Zijin Mining Group |
| Hubei Geoway Investment |
Zijin Mining and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Hubei Geoway
The main advantage of trading using opposite Zijin Mining and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Hubei Geoway 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 Geoway will offset losses from the drop in Hubei Geoway'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 |
| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |