Correlation Between Zijin Mining and Beijing Tongyizhong
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By analyzing existing cross correlation between Zijin Mining Group and Beijing Tongyizhong New, you can compare the effects of market volatilities on Zijin Mining and Beijing Tongyizhong 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 Beijing Tongyizhong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Beijing Tongyizhong.
Diversification Opportunities for Zijin Mining and Beijing Tongyizhong
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Beijing is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Beijing Tongyizhong New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Tongyizhong 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 Beijing Tongyizhong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Tongyizhong New has no effect on the direction of Zijin Mining i.e., Zijin Mining and Beijing Tongyizhong go up and down completely randomly.
Pair Corralation between Zijin Mining and Beijing Tongyizhong
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.72 times more return on investment than Beijing Tongyizhong. However, Zijin Mining Group is 1.39 times less risky than Beijing Tongyizhong. It trades about 0.22 of its potential returns per unit of risk. Beijing Tongyizhong New is currently generating about 0.06 per unit of risk. If you would invest 1,518 in Zijin Mining Group on November 3, 2024 and sell it today you would earn a total of 106.00 from holding Zijin Mining Group or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Beijing Tongyizhong New
Performance |
| Timeline |
| Zijin Mining Group |
| Beijing Tongyizhong New |
Zijin Mining and Beijing Tongyizhong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Beijing Tongyizhong
The main advantage of trading using opposite Zijin Mining and Beijing Tongyizhong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Beijing Tongyizhong 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 Beijing Tongyizhong will offset losses from the drop in Beijing Tongyizhong's long position.| Zijin Mining vs. Fiberhome Telecommunication Technologies | Zijin Mining vs. Tongyu Communication | Zijin Mining vs. Changjiang Publishing Media | Zijin Mining vs. Allwin Telecommunication Co |
| Beijing Tongyizhong vs. Dhc Software Co | Beijing Tongyizhong vs. Goodwill E Health | Beijing Tongyizhong vs. Heren Health Co | Beijing Tongyizhong vs. Meinian Onehealth Healthcare |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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