Correlation Between Jiangxi Hengda and Zijin Mining
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Zijin Mining Group, you can compare the effects of market volatilities on Jiangxi Hengda 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 Jiangxi Hengda with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Zijin Mining.
Diversification Opportunities for Jiangxi Hengda and Zijin Mining
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangxi and Zijin is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech 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 Jiangxi Hengda 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 Jiangxi Hengda Hi Tech 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 Jiangxi Hengda i.e., Jiangxi Hengda and Zijin Mining go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Zijin Mining
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to generate 1.32 times more return on investment than Zijin Mining. However, Jiangxi Hengda is 1.32 times more volatile than Zijin Mining Group. It trades about 0.12 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.02 per unit of risk. If you would invest 370.00 in Jiangxi Hengda Hi Tech on September 25, 2024 and sell it today you would earn a total of 166.00 from holding Jiangxi Hengda Hi Tech or generate 44.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Zijin Mining Group
Performance |
Timeline |
Jiangxi Hengda Hi |
Zijin Mining Group |
Jiangxi Hengda and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangxi Hengda and Zijin Mining
The main advantage of trading using opposite Jiangxi Hengda and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda 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.Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining | Jiangxi Hengda vs. Rongsheng Petrochemical Co |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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