Correlation Between Zijin Mining and Shanghai Broadband
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zijin Mining Group and Shanghai Broadband Technology, you can compare the effects of market volatilities on Zijin Mining and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Shanghai Broadband.
Diversification Opportunities for Zijin Mining and Shanghai Broadband
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Shanghai is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Zijin Mining i.e., Zijin Mining and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Zijin Mining and Shanghai Broadband
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.57 times more return on investment than Shanghai Broadband. However, Zijin Mining Group is 1.74 times less risky than Shanghai Broadband. It trades about 0.18 of its potential returns per unit of risk. Shanghai Broadband Technology is currently generating about 0.04 per unit of risk. If you would invest 1,549 in Zijin Mining Group on November 5, 2024 and sell it today you would earn a total of 75.00 from holding Zijin Mining Group or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Zijin Mining Group |
| Shanghai Broadband |
Zijin Mining and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Shanghai Broadband
The main advantage of trading using opposite Zijin Mining and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co |
| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |