Correlation Between Jiangsu Financial and Zijin Mining
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Zijin Mining Group, you can compare the effects of market volatilities on Jiangsu Financial 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 Jiangsu Financial with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Zijin Mining.
Diversification Opportunities for Jiangsu Financial and Zijin Mining
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Zijin is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing 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 Jiangsu Financial 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 Jiangsu Financial Leasing 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 Jiangsu Financial i.e., Jiangsu Financial and Zijin Mining go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Zijin Mining
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 1.36 times less return on investment than Zijin Mining. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 1.25 times less risky than Zijin Mining. It trades about 0.05 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,022 in Zijin Mining Group on September 26, 2024 and sell it today you would earn a total of 541.00 from holding Zijin Mining Group or generate 52.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Financial Leasing vs. Zijin Mining Group
Performance |
Timeline |
Jiangsu Financial Leasing |
Zijin Mining Group |
Jiangsu Financial and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Financial and Zijin Mining
The main advantage of trading using opposite Jiangsu Financial and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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.Jiangsu Financial vs. Zijin Mining Group | Jiangsu Financial vs. Lier Chemical Co | Jiangsu Financial vs. Tianjin Silvery Dragon | Jiangsu Financial vs. Jiangxi Naipu 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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