Correlation Between Zijin Mining and Anyang Iron
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By analyzing existing cross correlation between Zijin Mining Group and Anyang Iron Steel, you can compare the effects of market volatilities on Zijin Mining and Anyang Iron 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 Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Anyang Iron.
Diversification Opportunities for Zijin Mining and Anyang Iron
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Anyang is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Anyang Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anyang Iron Steel 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 Anyang Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anyang Iron Steel has no effect on the direction of Zijin Mining i.e., Zijin Mining and Anyang Iron go up and down completely randomly.
Pair Corralation between Zijin Mining and Anyang Iron
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Anyang Iron. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 2.14 times less risky than Anyang Iron. The stock trades about -0.04 of its potential returns per unit of risk. The Anyang Iron Steel is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 193.00 in Anyang Iron Steel on October 30, 2024 and sell it today you would lose (11.00) from holding Anyang Iron Steel or give up 5.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Anyang Iron Steel
Performance |
| Timeline |
| Zijin Mining Group |
| Anyang Iron Steel |
Zijin Mining and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Anyang Iron
The main advantage of trading using opposite Zijin Mining and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Anyang Iron 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 Anyang Iron will offset losses from the drop in Anyang Iron's long position.| Zijin Mining vs. Porton Fine Chemicals | Zijin Mining vs. Eyebright Medical Technology | Zijin Mining vs. ROPEOK Technology Group | Zijin Mining vs. Sinofibers Technology Co |
| Anyang Iron vs. Zijin Mining Group | Anyang Iron vs. Wanhua Chemical Group | Anyang Iron vs. Baoshan Iron Steel | Anyang Iron 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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