Correlation Between Zhejiang Huayou and Zijin Mining
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By analyzing existing cross correlation between Zhejiang Huayou Cobalt and Zijin Mining Group, you can compare the effects of market volatilities on Zhejiang Huayou 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 Zhejiang Huayou with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huayou and Zijin Mining.
Diversification Opportunities for Zhejiang Huayou and Zijin Mining
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Zijin is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huayou Cobalt 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 Zhejiang Huayou 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 Zhejiang Huayou Cobalt 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 Zhejiang Huayou i.e., Zhejiang Huayou and Zijin Mining go up and down completely randomly.
Pair Corralation between Zhejiang Huayou and Zijin Mining
Assuming the 90 days trading horizon Zhejiang Huayou Cobalt is expected to under-perform the Zijin Mining. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Huayou Cobalt is 1.07 times less risky than Zijin Mining. The stock trades about -0.21 of its potential returns per unit of risk. The Zijin Mining Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,535 in Zijin Mining Group on October 16, 2024 and sell it today you would earn a total of 105.00 from holding Zijin Mining Group or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Zhejiang Huayou Cobalt vs. Zijin Mining Group
Performance |
| Timeline |
| Zhejiang Huayou Cobalt |
| Zijin Mining Group |
Zhejiang Huayou and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Huayou and Zijin Mining
The main advantage of trading using opposite Zhejiang Huayou and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huayou 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.| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou vs. Shandong Gold Mining |
| Zijin Mining vs. Advanced Technology Materials | Zijin Mining vs. Jiangyin Haida Rubber | Zijin Mining vs. Zhejiang Qianjiang Motorcycle | Zijin Mining vs. Haima Automobile Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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