Correlation Between Sobute New and Zijin Mining
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By analyzing existing cross correlation between Sobute New Materials and Zijin Mining Group, you can compare the effects of market volatilities on Sobute New 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 Sobute New with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sobute New and Zijin Mining.
Diversification Opportunities for Sobute New and Zijin Mining
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sobute and Zijin is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sobute New Materials 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 Sobute New 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 Sobute New Materials 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 Sobute New i.e., Sobute New and Zijin Mining go up and down completely randomly.
Pair Corralation between Sobute New and Zijin Mining
Assuming the 90 days trading horizon Sobute New Materials is expected to generate 1.21 times more return on investment than Zijin Mining. However, Sobute New is 1.21 times more volatile than Zijin Mining Group. It trades about 0.02 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.35 per unit of risk. If you would invest 827.00 in Sobute New Materials on September 6, 2024 and sell it today you would earn a total of 4.00 from holding Sobute New Materials or generate 0.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sobute New Materials vs. Zijin Mining Group
Performance |
Timeline |
Sobute New Materials |
Zijin Mining Group |
Sobute New and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sobute New and Zijin Mining
The main advantage of trading using opposite Sobute New and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sobute New 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.Sobute New vs. Zijin Mining Group | Sobute New vs. Wanhua Chemical Group | Sobute New vs. Baoshan Iron Steel | Sobute New vs. Rongsheng Petrochemical Co |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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