Correlation Between Sinomine Resource and Zijin Mining
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By analyzing existing cross correlation between Sinomine Resource Exploration and Zijin Mining Group, you can compare the effects of market volatilities on Sinomine Resource 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 Sinomine Resource with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomine Resource and Zijin Mining.
Diversification Opportunities for Sinomine Resource and Zijin Mining
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sinomine and Zijin is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sinomine Resource Exploration 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 Sinomine Resource 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 Sinomine Resource Exploration 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 Sinomine Resource i.e., Sinomine Resource and Zijin Mining go up and down completely randomly.
Pair Corralation between Sinomine Resource and Zijin Mining
Assuming the 90 days trading horizon Sinomine Resource Exploration is expected to generate 1.87 times more return on investment than Zijin Mining. However, Sinomine Resource is 1.87 times more volatile than Zijin Mining Group. It trades about 0.11 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.04 per unit of risk. If you would invest 2,993 in Sinomine Resource Exploration on September 24, 2024 and sell it today you would earn a total of 663.00 from holding Sinomine Resource Exploration or generate 22.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Sinomine Resource Exploration vs. Zijin Mining Group
Performance |
Timeline |
Sinomine Resource |
Zijin Mining Group |
Sinomine Resource and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinomine Resource and Zijin Mining
The main advantage of trading using opposite Sinomine Resource and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomine Resource 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.Sinomine Resource vs. Zijin Mining Group | Sinomine Resource vs. Wanhua Chemical Group | Sinomine Resource vs. Baoshan Iron Steel | Sinomine Resource vs. Shandong Gold Mining |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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