Correlation Between Zijin Mining and Zhejiang Yongjin
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By analyzing existing cross correlation between Zijin Mining Group and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Zijin Mining and Zhejiang Yongjin 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 Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Zhejiang Yongjin.
Diversification Opportunities for Zijin Mining and Zhejiang Yongjin
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zijin and Zhejiang is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Zhejiang Yongjin Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yongjin Metal 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 Zhejiang Yongjin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yongjin Metal has no effect on the direction of Zijin Mining i.e., Zijin Mining and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Zijin Mining and Zhejiang Yongjin
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Zhejiang Yongjin. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.19 times less risky than Zhejiang Yongjin. The stock trades about -0.27 of its potential returns per unit of risk. The Zhejiang Yongjin Metal is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,919 in Zhejiang Yongjin Metal on August 25, 2024 and sell it today you would lose (77.00) from holding Zhejiang Yongjin Metal or give up 4.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zijin Mining Group vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Zijin Mining Group |
| Zhejiang Yongjin Metal |
Zijin Mining and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Zhejiang Yongjin
The main advantage of trading using opposite Zijin Mining and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Zhejiang Yongjin 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 Zhejiang Yongjin will offset losses from the drop in Zhejiang Yongjin's long position.| Zijin Mining vs. Tongyu Communication | Zijin Mining vs. Sunwave Communications Co | Zijin Mining vs. China Sports Industry | Zijin Mining vs. Offcn Education Technology |
| Zhejiang Yongjin vs. Zhejiang Yayi Metal | Zhejiang Yongjin vs. Ye Chiu Metal | Zhejiang Yongjin vs. Dalian Thermal Power | Zhejiang Yongjin vs. Lonkey Industrial 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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