Correlation Between Zijin Mining and China Kings
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By analyzing existing cross correlation between Zijin Mining Group and China Kings Resources, you can compare the effects of market volatilities on Zijin Mining and China Kings 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 China Kings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and China Kings.
Diversification Opportunities for Zijin Mining and China Kings
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and China is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and China Kings Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Kings Resources 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 China Kings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Kings Resources has no effect on the direction of Zijin Mining i.e., Zijin Mining and China Kings go up and down completely randomly.
Pair Corralation between Zijin Mining and China Kings
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.79 times more return on investment than China Kings. However, Zijin Mining Group is 1.26 times less risky than China Kings. It trades about 0.06 of its potential returns per unit of risk. China Kings Resources is currently generating about 0.02 per unit of risk. If you would invest 1,133 in Zijin Mining Group on August 31, 2024 and sell it today you would earn a total of 437.00 from holding Zijin Mining Group or generate 38.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. China Kings Resources
Performance |
| Timeline |
| Zijin Mining Group |
| China Kings Resources |
Zijin Mining and China Kings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and China Kings
The main advantage of trading using opposite Zijin Mining and China Kings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, China Kings 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 China Kings will offset losses from the drop in China Kings' long position.| Zijin Mining vs. Zhejiang JIULI Hi tech | Zijin Mining vs. FSPG Hi Tech Co | Zijin Mining vs. Guangzhou Haige Communications | Zijin Mining vs. Tianjin Hi Tech Development |
| China Kings vs. Will Semiconductor Co | China Kings vs. Hangzhou Gisway Information | China Kings vs. Emdoor Information Co | China Kings vs. AVCON Information Tech |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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