Correlation Between Zijin Mining and Kuang Chi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zijin Mining Group and Kuang Chi Technologies, you can compare the effects of market volatilities on Zijin Mining and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Kuang Chi.
Diversification Opportunities for Zijin Mining and Kuang Chi
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Kuang is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Zijin Mining i.e., Zijin Mining and Kuang Chi go up and down completely randomly.
Pair Corralation between Zijin Mining and Kuang Chi
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.76 times less risky than Kuang Chi. The stock trades about -0.02 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about 0.22 of returns per unit of risk over similar time horizon. 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 |
Zijin Mining Group vs. Kuang Chi Technologies
Performance |
Timeline |
Zijin Mining Group |
Kuang Chi Technologies |
Zijin Mining and Kuang Chi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zijin Mining and Kuang Chi
The main advantage of trading using opposite Zijin Mining and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi'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 |
Kuang Chi vs. ROPEOK Technology Group | Kuang Chi vs. Lotus Health Group | Kuang Chi vs. Dezhan HealthCare Co | Kuang Chi vs. By health |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |