Correlation Between Zijin Mining and China Molybdenum
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By analyzing existing cross correlation between Zijin Mining Group and China Molybdenum Co, you can compare the effects of market volatilities on Zijin Mining and China Molybdenum 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 Molybdenum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and China Molybdenum.
Diversification Opportunities for Zijin Mining and China Molybdenum
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zijin and China is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and China Molybdenum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Molybdenum 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 Molybdenum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Molybdenum has no effect on the direction of Zijin Mining i.e., Zijin Mining and China Molybdenum go up and down completely randomly.
Pair Corralation between Zijin Mining and China Molybdenum
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the China Molybdenum. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.16 times less risky than China Molybdenum. The stock trades about -0.26 of its potential returns per unit of risk. The China Molybdenum Co is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 792.00 in China Molybdenum Co on August 28, 2024 and sell it today you would lose (65.00) from holding China Molybdenum Co or give up 8.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. China Molybdenum Co
Performance |
| Timeline |
| Zijin Mining Group |
| China Molybdenum |
Zijin Mining and China Molybdenum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and China Molybdenum
The main advantage of trading using opposite Zijin Mining and China Molybdenum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, China Molybdenum 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 Molybdenum will offset losses from the drop in China Molybdenum's long position.| Zijin Mining vs. Sichuan Fulin Transportation | Zijin Mining vs. Jiangsu Yanghe Brewery | Zijin Mining vs. Broadex Technologies Co | Zijin Mining vs. Haima Automobile Group |
| China Molybdenum vs. Anhui Jianghuai Automobile | China Molybdenum vs. Jinhui Liquor Co | China Molybdenum vs. China Publishing Media | China Molybdenum vs. Changchun Faway Automobile |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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