Correlation Between Kuang Chi and Zijin Mining
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By analyzing existing cross correlation between Kuang Chi Technologies and Zijin Mining Group, you can compare the effects of market volatilities on Kuang Chi 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 Kuang Chi with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Zijin Mining.
Diversification Opportunities for Kuang Chi and Zijin Mining
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuang and Zijin is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies 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 Kuang Chi 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 Kuang Chi Technologies 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 Kuang Chi i.e., Kuang Chi and Zijin Mining go up and down completely randomly.
Pair Corralation between Kuang Chi and Zijin Mining
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.76 times more return on investment than Zijin Mining. However, Kuang Chi is 1.76 times more volatile than Zijin Mining Group. It trades about 0.22 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 1,695 in Kuang Chi Technologies on September 25, 2024 and sell it today you would earn a total of 2,701 from holding Kuang Chi Technologies or generate 159.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kuang Chi Technologies vs. Zijin Mining Group
Performance |
Timeline |
Kuang Chi Technologies |
Zijin Mining Group |
Kuang Chi and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuang Chi and Zijin Mining
The main advantage of trading using opposite Kuang Chi and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi 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.Kuang Chi vs. ROPEOK Technology Group | Kuang Chi vs. Lotus Health Group | Kuang Chi vs. Dezhan HealthCare Co | Kuang Chi vs. By health |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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