Correlation Between Zijin Mining and Shanghai Ziyan
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By analyzing existing cross correlation between Zijin Mining Group and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Zijin Mining and Shanghai Ziyan 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 Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Shanghai Ziyan.
Diversification Opportunities for Zijin Mining and Shanghai Ziyan
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zijin and Shanghai is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Zijin Mining i.e., Zijin Mining and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Zijin Mining and Shanghai Ziyan
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.4 times more return on investment than Shanghai Ziyan. However, Zijin Mining Group is 2.49 times less risky than Shanghai Ziyan. It trades about 0.15 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about 0.03 per unit of risk. If you would invest 1,532 in Zijin Mining Group on October 20, 2024 and sell it today you would earn a total of 95.00 from holding Zijin Mining Group or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Zijin Mining Group |
| Shanghai Ziyan Foods |
Zijin Mining and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Shanghai Ziyan
The main advantage of trading using opposite Zijin Mining and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Shanghai Ziyan 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 Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Zijin Mining vs. Eastern Communications Co | Zijin Mining vs. Xiangyang Automobile Bearing | Zijin Mining vs. Iat Automobile Technology | Zijin Mining vs. Nanjing Putian Telecommunications |
| Shanghai Ziyan vs. Omnijoi Media Corp | Shanghai Ziyan vs. Guangdong Qunxing Toys | Shanghai Ziyan vs. Threes Company Media | Shanghai Ziyan vs. Kidswant Children Products |
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 CEOs Directory module to screen CEOs from public companies around the world.
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