Correlation Between Jinhui Liquor and Zijin Mining
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By analyzing existing cross correlation between Jinhui Liquor Co and Zijin Mining Group, you can compare the effects of market volatilities on Jinhui Liquor 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 Liquor with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Zijin Mining.
Diversification Opportunities for Jinhui Liquor and Zijin Mining
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinhui and Zijin is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor 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 Liquor 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 Liquor 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 Liquor i.e., Jinhui Liquor and Zijin Mining go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Zijin Mining
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Zijin Mining. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 1.13 times less risky than Zijin Mining. The stock trades about -0.35 of its potential returns per unit of risk. The Zijin Mining Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,606 in Zijin Mining Group on October 11, 2024 and sell it today you would lose (14.00) from holding Zijin Mining Group or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Zijin Mining Group
Performance |
| Timeline |
| Jinhui Liquor |
| Zijin Mining Group |
Jinhui Liquor and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Zijin Mining
The main advantage of trading using opposite Jinhui Liquor and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor 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 Liquor vs. Sunny Loan Top | Jinhui Liquor vs. Xinxiang Chemical Fiber | Jinhui Liquor vs. Wuxi Chemical Equipment | Jinhui Liquor vs. Semiconductor Manufacturing Intl |
| Zijin Mining vs. INKON Life Technology | Zijin Mining vs. Kuang Chi Technologies | Zijin Mining vs. Linktel Technologies Co | Zijin Mining vs. Holitech Technology Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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