Correlation Between Zijin Mining and Sanxiang Advanced
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By analyzing existing cross correlation between Zijin Mining Group and Sanxiang Advanced Materials, you can compare the effects of market volatilities on Zijin Mining and Sanxiang Advanced 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 Sanxiang Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Sanxiang Advanced.
Diversification Opportunities for Zijin Mining and Sanxiang Advanced
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zijin and Sanxiang is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Sanxiang Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanxiang Advanced 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 Sanxiang Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanxiang Advanced has no effect on the direction of Zijin Mining i.e., Zijin Mining and Sanxiang Advanced go up and down completely randomly.
Pair Corralation between Zijin Mining and Sanxiang Advanced
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.74 times more return on investment than Sanxiang Advanced. However, Zijin Mining Group is 1.35 times less risky than Sanxiang Advanced. It trades about 0.06 of its potential returns per unit of risk. Sanxiang Advanced Materials is currently generating about 0.01 per unit of risk. If you would invest 1,570 in Zijin Mining Group on October 30, 2024 and sell it today you would earn a total of 54.00 from holding Zijin Mining Group or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Sanxiang Advanced Materials
Performance |
| Timeline |
| Zijin Mining Group |
| Sanxiang Advanced |
Zijin Mining and Sanxiang Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Sanxiang Advanced
The main advantage of trading using opposite Zijin Mining and Sanxiang Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Sanxiang Advanced 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 Sanxiang Advanced will offset losses from the drop in Sanxiang Advanced's long position.| Zijin Mining vs. Porton Fine Chemicals | Zijin Mining vs. Eyebright Medical Technology | Zijin Mining vs. ROPEOK Technology Group | Zijin Mining vs. Sinofibers Technology Co |
| Sanxiang Advanced vs. Zijin Mining Group | Sanxiang Advanced vs. Wanhua Chemical Group | Sanxiang Advanced vs. Baoshan Iron Steel | Sanxiang Advanced vs. Shandong Gold Mining |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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