Correlation Between Liaoning Dingjide and Zijin Mining
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By analyzing existing cross correlation between Liaoning Dingjide Petrochemical and Zijin Mining Group, you can compare the effects of market volatilities on Liaoning Dingjide 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 Liaoning Dingjide with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Dingjide and Zijin Mining.
Diversification Opportunities for Liaoning Dingjide and Zijin Mining
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liaoning and Zijin is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Dingjide Petrochemica 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 Liaoning Dingjide 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 Liaoning Dingjide Petrochemical 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 Liaoning Dingjide i.e., Liaoning Dingjide and Zijin Mining go up and down completely randomly.
Pair Corralation between Liaoning Dingjide and Zijin Mining
Assuming the 90 days trading horizon Liaoning Dingjide Petrochemical is expected to generate 1.22 times more return on investment than Zijin Mining. However, Liaoning Dingjide is 1.22 times more volatile than Zijin Mining Group. It trades about 0.1 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 2,385 in Liaoning Dingjide Petrochemical on September 25, 2024 and sell it today you would earn a total of 827.00 from holding Liaoning Dingjide Petrochemical or generate 34.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Liaoning Dingjide Petrochemica vs. Zijin Mining Group
Performance |
Timeline |
Liaoning Dingjide |
Zijin Mining Group |
Liaoning Dingjide and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Liaoning Dingjide and Zijin Mining
The main advantage of trading using opposite Liaoning Dingjide and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Dingjide 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.Liaoning Dingjide vs. Zijin Mining Group | Liaoning Dingjide vs. Baoshan Iron Steel | Liaoning Dingjide vs. Shandong Gold Mining | Liaoning Dingjide vs. Rongsheng Petrochemical Co |
Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Inner Mongolia BaoTou |
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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