Correlation Between Zijin Mining and Sinomine Resource
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By analyzing existing cross correlation between Zijin Mining Group and Sinomine Resource Exploration, you can compare the effects of market volatilities on Zijin Mining and Sinomine Resource 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 Zijin Mining with a short position of Sinomine Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Sinomine Resource.
Diversification Opportunities for Zijin Mining and Sinomine Resource
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Sinomine is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Sinomine Resource Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomine Resource and Zijin Mining 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 Zijin Mining Group are associated (or correlated) with Sinomine Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomine Resource has no effect on the direction of Zijin Mining i.e., Zijin Mining and Sinomine Resource go up and down completely randomly.
Pair Corralation between Zijin Mining and Sinomine Resource
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Sinomine Resource. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.9 times less risky than Sinomine Resource. The stock trades about -0.07 of its potential returns per unit of risk. The Sinomine Resource Exploration is currently generating about 0.11 of returns per unit of risk over similar time horizon. 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 | 100.0% |
Values | Daily Returns |
Zijin Mining Group vs. Sinomine Resource Exploration
Performance |
Timeline |
Zijin Mining Group |
Sinomine Resource |
Zijin Mining and Sinomine Resource Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zijin Mining and Sinomine Resource
The main advantage of trading using opposite Zijin Mining and Sinomine Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Sinomine Resource 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 Sinomine Resource will offset losses from the drop in Sinomine Resource's long position.Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co |
Sinomine Resource vs. Zijin Mining Group | Sinomine Resource vs. Wanhua Chemical Group | Sinomine Resource vs. Baoshan Iron Steel | Sinomine Resource vs. Shandong Gold Mining |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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