Correlation Between Zijin Mining and Shanghai Putailai
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By analyzing existing cross correlation between Zijin Mining Group and Shanghai Putailai New, you can compare the effects of market volatilities on Zijin Mining and Shanghai Putailai 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 Putailai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Shanghai Putailai.
Diversification Opportunities for Zijin Mining and Shanghai Putailai
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Shanghai is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Shanghai Putailai New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Putailai New 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 Putailai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Putailai New has no effect on the direction of Zijin Mining i.e., Zijin Mining and Shanghai Putailai go up and down completely randomly.
Pair Corralation between Zijin Mining and Shanghai Putailai
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.8 times more return on investment than Shanghai Putailai. However, Zijin Mining Group is 1.24 times less risky than Shanghai Putailai. It trades about 0.0 of its potential returns per unit of risk. Shanghai Putailai New is currently generating about -0.36 per unit of risk. If you would invest 1,554 in Zijin Mining Group on September 27, 2024 and sell it today you would lose (2.00) from holding Zijin Mining Group or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Shanghai Putailai New
Performance |
| Timeline |
| Zijin Mining Group |
| Shanghai Putailai New |
Zijin Mining and Shanghai Putailai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Shanghai Putailai
The main advantage of trading using opposite Zijin Mining and Shanghai Putailai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Shanghai Putailai 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 Putailai will offset losses from the drop in Shanghai Putailai's long position.| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Inner Mongolia BaoTou |
| Shanghai Putailai vs. Zijin Mining Group | Shanghai Putailai vs. Baoshan Iron Steel | Shanghai Putailai vs. Shandong Gold Mining | Shanghai Putailai vs. Rongsheng Petrochemical Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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