Correlation Between Zijin Mining and Cinda Securities
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By analyzing existing cross correlation between Zijin Mining Group and Cinda Securities Co, you can compare the effects of market volatilities on Zijin Mining and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Cinda Securities.
Diversification Opportunities for Zijin Mining and Cinda Securities
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zijin and Cinda is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Zijin Mining i.e., Zijin Mining and Cinda Securities go up and down completely randomly.
Pair Corralation between Zijin Mining and Cinda Securities
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.82 times more return on investment than Cinda Securities. However, Zijin Mining Group is 1.22 times less risky than Cinda Securities. It trades about 0.14 of its potential returns per unit of risk. Cinda Securities Co is currently generating about -0.34 per unit of risk. If you would invest 1,530 in Zijin Mining Group on October 28, 2024 and sell it today you would earn a total of 72.00 from holding Zijin Mining Group or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Cinda Securities Co
Performance |
| Timeline |
| Zijin Mining Group |
| Cinda Securities |
Zijin Mining and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Cinda Securities
The main advantage of trading using opposite Zijin Mining and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| Zijin Mining vs. Hainan Airlines Co | Zijin Mining vs. Duzhe Publishing Media | Zijin Mining vs. Sichuan Newsnet Media | Zijin Mining vs. Guangzhou KDT Machinery |
| Cinda Securities vs. Industrial and Commercial | Cinda Securities vs. Kweichow Moutai Co | Cinda Securities vs. Agricultural Bank of | Cinda Securities vs. China Mobile Limited |
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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