Correlation Between Zijin Mining and Ningbo Jintian
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By analyzing existing cross correlation between Zijin Mining Group and Ningbo Jintian Copper, you can compare the effects of market volatilities on Zijin Mining and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Ningbo Jintian.
Diversification Opportunities for Zijin Mining and Ningbo Jintian
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zijin and Ningbo is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Zijin Mining i.e., Zijin Mining and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Zijin Mining and Ningbo Jintian
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Ningbo Jintian. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.46 times less risky than Ningbo Jintian. The stock trades about -0.06 of its potential returns per unit of risk. The Ningbo Jintian Copper is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 603.00 in Ningbo Jintian Copper on November 6, 2024 and sell it today you would earn a total of 6.00 from holding Ningbo Jintian Copper or generate 1.0% 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. Ningbo Jintian Copper
Performance |
| Timeline |
| Zijin Mining Group |
| Ningbo Jintian Copper |
Zijin Mining and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Ningbo Jintian
The main advantage of trading using opposite Zijin Mining and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.| Zijin Mining vs. Hainan Mining Co | Zijin Mining vs. Anhui Jinhe Industrial | Zijin Mining vs. Shenzhen Bioeasy Biotechnology | Zijin Mining vs. Chengtun Mining Group |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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