Correlation Between Zijin Mining and Huaibei Mining
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By analyzing existing cross correlation between Zijin Mining Group and Huaibei Mining Holdings, you can compare the effects of market volatilities on Zijin Mining and Huaibei Mining 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 Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Huaibei Mining.
Diversification Opportunities for Zijin Mining and Huaibei Mining
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zijin and Huaibei is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings 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 Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of Zijin Mining i.e., Zijin Mining and Huaibei Mining go up and down completely randomly.
Pair Corralation between Zijin Mining and Huaibei Mining
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 1.02 times more return on investment than Huaibei Mining. However, Zijin Mining is 1.02 times more volatile than Huaibei Mining Holdings. It trades about 0.05 of its potential returns per unit of risk. Huaibei Mining Holdings is currently generating about 0.03 per unit of risk. If you would invest 1,015 in Zijin Mining Group on August 29, 2024 and sell it today you would earn a total of 553.00 from holding Zijin Mining Group or generate 54.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Huaibei Mining Holdings
Performance |
| Timeline |
| Zijin Mining Group |
| Huaibei Mining Holdings |
Zijin Mining and Huaibei Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Huaibei Mining
The main advantage of trading using opposite Zijin Mining and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Huaibei Mining 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.| Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Inner Mongolia BaoTou | Zijin Mining vs. Jiangxi Ganfeng Lithium |
| Huaibei Mining vs. Tsingtao Brewery Co | Huaibei Mining vs. Anhui Jianghuai Automobile | Huaibei Mining vs. China Sports Industry | Huaibei Mining vs. Everdisplay Optronics Shanghai |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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