Correlation Between Zijin Mining and Shanghai Huayi
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By analyzing existing cross correlation between Zijin Mining Group and Shanghai Huayi Group, you can compare the effects of market volatilities on Zijin Mining and Shanghai Huayi 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 Huayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Shanghai Huayi.
Diversification Opportunities for Zijin Mining and Shanghai Huayi
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Shanghai is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Shanghai Huayi Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Huayi Group 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 Huayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Huayi Group has no effect on the direction of Zijin Mining i.e., Zijin Mining and Shanghai Huayi go up and down completely randomly.
Pair Corralation between Zijin Mining and Shanghai Huayi
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Shanghai Huayi. In addition to that, Zijin Mining is 1.65 times more volatile than Shanghai Huayi Group. It trades about -0.16 of its total potential returns per unit of risk. Shanghai Huayi Group is currently generating about -0.1 per unit of volatility. If you would invest 53.00 in Shanghai Huayi Group on December 4, 2024 and sell it today you would lose (1.00) from holding Shanghai Huayi Group or give up 1.89% 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 Huayi Group
Performance |
| Timeline |
| Zijin Mining Group |
| Shanghai Huayi Group |
Zijin Mining and Shanghai Huayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Shanghai Huayi
The main advantage of trading using opposite Zijin Mining and Shanghai Huayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Shanghai Huayi 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 Huayi will offset losses from the drop in Shanghai Huayi's long position.| Zijin Mining vs. Emdoor Information Co | Zijin Mining vs. XinJiang GuoTong Pipeline | Zijin Mining vs. Shandong Publishing Media | Zijin Mining vs. COL Digital Publishing |
| Shanghai Huayi vs. Henan Shuanghui Investment | Shanghai Huayi vs. Nancal Energy Saving Tech | Shanghai Huayi vs. Xiamen Bank Co | Shanghai Huayi vs. Ping An Insurance |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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