Correlation Between Zijin Mining and Guangdong Tianhe
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By analyzing existing cross correlation between Zijin Mining Group and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Zijin Mining and Guangdong Tianhe 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 Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Guangdong Tianhe.
Diversification Opportunities for Zijin Mining and Guangdong Tianhe
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Guangdong is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Zijin Mining i.e., Zijin Mining and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Zijin Mining and Guangdong Tianhe
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Guangdong Tianhe. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.93 times less risky than Guangdong Tianhe. The stock trades about -0.03 of its potential returns per unit of risk. The Guangdong Tianhe Agricultural is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 510.00 in Guangdong Tianhe Agricultural on September 23, 2024 and sell it today you would earn a total of 230.00 from holding Guangdong Tianhe Agricultural or generate 45.1% 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. Guangdong Tianhe Agricultural
Performance |
Timeline |
Zijin Mining Group |
Guangdong Tianhe Agr |
Zijin Mining and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zijin Mining and Guangdong Tianhe
The main advantage of trading using opposite Zijin Mining and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe'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 |
Guangdong Tianhe vs. Zijin Mining Group | Guangdong Tianhe vs. Wanhua Chemical Group | Guangdong Tianhe vs. Baoshan Iron Steel | Guangdong Tianhe 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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