Correlation Between Guangdong Tianhe and Zijin Mining
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By analyzing existing cross correlation between Guangdong Tianhe Agricultural and Zijin Mining Group, you can compare the effects of market volatilities on Guangdong Tianhe 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 Guangdong Tianhe with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Tianhe and Zijin Mining.
Diversification Opportunities for Guangdong Tianhe and Zijin Mining
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Zijin is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Tianhe Agricultural 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 Guangdong Tianhe 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 Guangdong Tianhe Agricultural 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 Guangdong Tianhe i.e., Guangdong Tianhe and Zijin Mining go up and down completely randomly.
Pair Corralation between Guangdong Tianhe and Zijin Mining
Assuming the 90 days trading horizon Guangdong Tianhe Agricultural is expected to generate 1.78 times more return on investment than Zijin Mining. However, Guangdong Tianhe is 1.78 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 523.00 in Guangdong Tianhe Agricultural on September 24, 2024 and sell it today you would earn a total of 123.00 from holding Guangdong Tianhe Agricultural or generate 23.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Tianhe Agricultural vs. Zijin Mining Group
Performance |
Timeline |
Guangdong Tianhe Agr |
Zijin Mining Group |
Guangdong Tianhe and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Tianhe and Zijin Mining
The main advantage of trading using opposite Guangdong Tianhe and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Tianhe 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.Guangdong Tianhe vs. Zijin Mining Group | Guangdong Tianhe vs. Wanhua Chemical Group | Guangdong Tianhe vs. Baoshan Iron Steel | Guangdong Tianhe 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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