Correlation Between China Molybdenum and Zijin Mining
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By analyzing existing cross correlation between China Molybdenum Co and Zijin Mining Group, you can compare the effects of market volatilities on China Molybdenum 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 China Molybdenum with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Molybdenum and Zijin Mining.
Diversification Opportunities for China Molybdenum and Zijin Mining
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Zijin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding China Molybdenum Co 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 China Molybdenum 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 China Molybdenum Co 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 China Molybdenum i.e., China Molybdenum and Zijin Mining go up and down completely randomly.
Pair Corralation between China Molybdenum and Zijin Mining
Assuming the 90 days trading horizon China Molybdenum Co is expected to generate 1.2 times more return on investment than Zijin Mining. However, China Molybdenum is 1.2 times more volatile than Zijin Mining Group. It trades about 0.06 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.05 per unit of risk. If you would invest 520.00 in China Molybdenum Co on September 24, 2024 and sell it today you would earn a total of 165.00 from holding China Molybdenum Co or generate 31.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
China Molybdenum Co vs. Zijin Mining Group
Performance |
Timeline |
China Molybdenum |
Zijin Mining Group |
China Molybdenum and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Molybdenum and Zijin Mining
The main advantage of trading using opposite China Molybdenum and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Molybdenum 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.China Molybdenum vs. Zijin Mining Group | China Molybdenum vs. Wanhua Chemical Group | China Molybdenum vs. Baoshan Iron Steel | China Molybdenum vs. Shandong Gold Mining |
Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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