Correlation Between Jinhui Mining and Zijin Mining
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By analyzing existing cross correlation between Jinhui Mining Co and Zijin Mining Group, you can compare the effects of market volatilities on Jinhui Mining and Zijin Mining 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 Jinhui Mining with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Zijin Mining.
Diversification Opportunities for Jinhui Mining and Zijin Mining
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Zijin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group and Jinhui 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 Jinhui Mining Co are associated (or correlated) with Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Zijin Mining go up and down completely randomly.
Pair Corralation between Jinhui Mining and Zijin Mining
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 1.12 times more return on investment than Zijin Mining. However, Jinhui Mining is 1.12 times more volatile than Zijin Mining Group. It trades about 0.04 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.01 per unit of risk. If you would invest 1,118 in Jinhui Mining Co on August 25, 2024 and sell it today you would earn a total of 45.00 from holding Jinhui Mining Co or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.31% |
| Values | Daily Returns |
Jinhui Mining Co vs. Zijin Mining Group
Performance |
| Timeline |
| Jinhui Mining |
| Zijin Mining Group |
Jinhui Mining and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Zijin Mining
The main advantage of trading using opposite Jinhui Mining and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Zijin Mining 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 Zijin Mining will offset losses from the drop in Zijin Mining's long position.| Jinhui Mining vs. Changchun UP Optotech | Jinhui Mining vs. Cultural Investment Holdings | Jinhui Mining vs. Harbin Hatou Investment | Jinhui Mining vs. Kuangda Technology Group |
| Zijin Mining vs. Tongyu Communication | Zijin Mining vs. Sunwave Communications Co | Zijin Mining vs. China Sports Industry | Zijin Mining vs. Offcn Education Technology |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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