Correlation Between Xinjiang Baodi and Zijin Mining
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Zijin Mining Group, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Zijin Mining.
Diversification Opportunities for Xinjiang Baodi and Zijin Mining
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xinjiang and Zijin is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining 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 Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and Zijin Mining go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Zijin Mining
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.59 times more return on investment than Zijin Mining. However, Xinjiang Baodi is 1.59 times more volatile than Zijin Mining Group. It trades about 0.13 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 652.00 in Xinjiang Baodi Mining on September 17, 2024 and sell it today you would earn a total of 41.00 from holding Xinjiang Baodi Mining or generate 6.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xinjiang Baodi Mining vs. Zijin Mining Group
Performance |
Timeline |
Xinjiang Baodi Mining |
Zijin Mining Group |
Xinjiang Baodi and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinjiang Baodi and Zijin Mining
The main advantage of trading using opposite Xinjiang Baodi and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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