Correlation Between Yunnan Chuangxin and Zijin Mining
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By analyzing existing cross correlation between Yunnan Chuangxin New and Zijin Mining Group, you can compare the effects of market volatilities on Yunnan Chuangxin 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 Yunnan Chuangxin with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Chuangxin and Zijin Mining.
Diversification Opportunities for Yunnan Chuangxin and Zijin Mining
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yunnan and Zijin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Chuangxin New 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 Yunnan Chuangxin 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 Yunnan Chuangxin New 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 Yunnan Chuangxin i.e., Yunnan Chuangxin and Zijin Mining go up and down completely randomly.
Pair Corralation between Yunnan Chuangxin and Zijin Mining
Assuming the 90 days trading horizon Yunnan Chuangxin New is expected to generate 2.0 times more return on investment than Zijin Mining. However, Yunnan Chuangxin is 2.0 times more volatile than Zijin Mining Group. It trades about 0.12 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.07 per unit of risk. If you would invest 2,667 in Yunnan Chuangxin New on September 24, 2024 and sell it today you would earn a total of 710.00 from holding Yunnan Chuangxin New or generate 26.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Yunnan Chuangxin New vs. Zijin Mining Group
Performance |
Timeline |
Yunnan Chuangxin New |
Zijin Mining Group |
Yunnan Chuangxin and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yunnan Chuangxin and Zijin Mining
The main advantage of trading using opposite Yunnan Chuangxin and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Chuangxin 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.Yunnan Chuangxin vs. Zijin Mining Group | Yunnan Chuangxin vs. Wanhua Chemical Group | Yunnan Chuangxin vs. Baoshan Iron Steel | Yunnan Chuangxin 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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