Correlation Between Zijin Mining and Guocheng Mining
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By analyzing existing cross correlation between Zijin Mining Group and Guocheng Mining Co, you can compare the effects of market volatilities on Zijin Mining and Guocheng 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 Zijin Mining with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Guocheng Mining.
Diversification Opportunities for Zijin Mining and Guocheng Mining
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Guocheng is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Zijin Mining 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 Zijin Mining Group are associated (or correlated) with Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Zijin Mining i.e., Zijin Mining and Guocheng Mining go up and down completely randomly.
Pair Corralation between Zijin Mining and Guocheng Mining
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Guocheng Mining. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.55 times less risky than Guocheng Mining. The stock trades about -0.02 of its potential returns per unit of risk. The Guocheng Mining Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 949.00 in Guocheng Mining Co on September 25, 2024 and sell it today you would earn a total of 430.00 from holding Guocheng Mining Co or generate 45.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Zijin Mining Group vs. Guocheng Mining Co
Performance |
Timeline |
Zijin Mining Group |
Guocheng Mining |
Zijin Mining and Guocheng Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zijin Mining and Guocheng Mining
The main advantage of trading using opposite Zijin Mining and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Guocheng 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Inner Mongolia BaoTou |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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