Correlation Between Zijin Mining and Jinhui Mining
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By analyzing existing cross correlation between Zijin Mining Group and Jinhui Mining Co, you can compare the effects of market volatilities on Zijin Mining and Jinhui 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 Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Jinhui Mining.
Diversification Opportunities for Zijin Mining and Jinhui Mining
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zijin and Jinhui is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining 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 Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Zijin Mining i.e., Zijin Mining and Jinhui Mining go up and down completely randomly.
Pair Corralation between Zijin Mining and Jinhui Mining
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 1.28 times more return on investment than Jinhui Mining. However, Zijin Mining is 1.28 times more volatile than Jinhui Mining Co. It trades about 0.15 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about 0.12 per unit of risk. If you would invest 1,557 in Zijin Mining Group on November 4, 2024 and sell it today you would earn a total of 67.00 from holding Zijin Mining Group or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Jinhui Mining Co
Performance |
| Timeline |
| Zijin Mining Group |
| Jinhui Mining |
Zijin Mining and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Jinhui Mining
The main advantage of trading using opposite Zijin Mining and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Jinhui 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 Jinhui Mining will offset losses from the drop in Jinhui Mining's long position.| Zijin Mining vs. Chengdu Xingrong Investment | Zijin Mining vs. Metro Investment Development | Zijin Mining vs. Hubei Geoway Investment | Zijin Mining vs. Linewell Software Co |
| Jinhui Mining vs. Dazhong Transportation Group | Jinhui Mining vs. Lander Sports Development | Jinhui Mining vs. Heilongjiang Transport Development | Jinhui Mining vs. Zhongshan Public Utilities |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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