Correlation Between Shanghai Putailai and Zijin Mining
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By analyzing existing cross correlation between Shanghai Putailai New and Zijin Mining Group, you can compare the effects of market volatilities on Shanghai Putailai 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 Shanghai Putailai with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Putailai and Zijin Mining.
Diversification Opportunities for Shanghai Putailai and Zijin Mining
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Zijin is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Putailai New 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 Shanghai Putailai 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 Shanghai Putailai New 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 Shanghai Putailai i.e., Shanghai Putailai and Zijin Mining go up and down completely randomly.
Pair Corralation between Shanghai Putailai and Zijin Mining
Assuming the 90 days trading horizon Shanghai Putailai New is expected to under-perform the Zijin Mining. In addition to that, Shanghai Putailai is 2.12 times more volatile than Zijin Mining Group. It trades about -0.18 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about -0.06 per unit of volatility. If you would invest 1,651 in Zijin Mining Group on September 12, 2024 and sell it today you would lose (39.00) from holding Zijin Mining Group or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Putailai New vs. Zijin Mining Group
Performance |
| Timeline |
| Shanghai Putailai New |
| Zijin Mining Group |
Shanghai Putailai and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Putailai and Zijin Mining
The main advantage of trading using opposite Shanghai Putailai and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Putailai 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.| Shanghai Putailai vs. Jiangsu Xinri E Vehicle | Shanghai Putailai vs. Duzhe Publishing Media | Shanghai Putailai vs. JiShi Media Co | Shanghai Putailai vs. Qingdao Citymedia Co |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Hoshine Silicon Ind |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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