Correlation Between Suzhou Xingye and Zijin Mining
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By analyzing existing cross correlation between Suzhou Xingye Material and Zijin Mining Group, you can compare the effects of market volatilities on Suzhou Xingye 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 Suzhou Xingye with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Zijin Mining.
Diversification Opportunities for Suzhou Xingye and Zijin Mining
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Suzhou and Zijin is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material 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 Suzhou Xingye 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 Suzhou Xingye Material 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 Suzhou Xingye i.e., Suzhou Xingye and Zijin Mining go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Zijin Mining
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to generate 2.43 times more return on investment than Zijin Mining. However, Suzhou Xingye is 2.43 times more volatile than Zijin Mining Group. It trades about 0.23 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.05 per unit of risk. If you would invest 925.00 in Suzhou Xingye Material on October 26, 2024 and sell it today you would earn a total of 395.00 from holding Suzhou Xingye Material or generate 42.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Zijin Mining Group
Performance |
| Timeline |
| Suzhou Xingye Material |
| Zijin Mining Group |
Suzhou Xingye and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Zijin Mining
The main advantage of trading using opposite Suzhou Xingye and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye 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.| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Shandong Gold Mining |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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