Correlation Between Zhejiang HISUN and Zijin Mining
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By analyzing existing cross correlation between Zhejiang HISUN Biomaterials and Zijin Mining Group, you can compare the effects of market volatilities on Zhejiang HISUN 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 HISUN with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang HISUN and Zijin Mining.
Diversification Opportunities for Zhejiang HISUN and Zijin Mining
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Zijin is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang HISUN Biomaterials 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 HISUN 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 HISUN Biomaterials 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 HISUN i.e., Zhejiang HISUN and Zijin Mining go up and down completely randomly.
Pair Corralation between Zhejiang HISUN and Zijin Mining
Assuming the 90 days trading horizon Zhejiang HISUN Biomaterials is expected to generate 1.21 times more return on investment than Zijin Mining. However, Zhejiang HISUN is 1.21 times more volatile than Zijin Mining Group. It trades about 0.1 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.27 per unit of risk. If you would invest 1,011 in Zhejiang HISUN Biomaterials on September 3, 2024 and sell it today you would earn a total of 38.00 from holding Zhejiang HISUN Biomaterials or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang HISUN Biomaterials vs. Zijin Mining Group
Performance |
| Timeline |
| Zhejiang HISUN Bioma |
| Zijin Mining Group |
Zhejiang HISUN and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang HISUN and Zijin Mining
The main advantage of trading using opposite Zhejiang HISUN and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang HISUN 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 HISUN vs. Dook Media Group | Zhejiang HISUN vs. Ciwen Media Co | Zhejiang HISUN vs. Metro Investment Development | Zhejiang HISUN vs. Hunan Investment 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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