Correlation Between Tangshan Jidong and Zijin Mining
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By analyzing existing cross correlation between Tangshan Jidong Cement and Zijin Mining Group, you can compare the effects of market volatilities on Tangshan Jidong 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 Tangshan Jidong with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangshan Jidong and Zijin Mining.
Diversification Opportunities for Tangshan Jidong and Zijin Mining
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tangshan and Zijin is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Tangshan Jidong Cement 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 Tangshan Jidong 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 Tangshan Jidong Cement 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 Tangshan Jidong i.e., Tangshan Jidong and Zijin Mining go up and down completely randomly.
Pair Corralation between Tangshan Jidong and Zijin Mining
Assuming the 90 days trading horizon Tangshan Jidong Cement is expected to generate 1.33 times more return on investment than Zijin Mining. However, Tangshan Jidong is 1.33 times more volatile than Zijin Mining Group. It trades about 0.22 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.11 per unit of risk. If you would invest 428.00 in Tangshan Jidong Cement on September 12, 2024 and sell it today you would earn a total of 164.00 from holding Tangshan Jidong Cement or generate 38.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tangshan Jidong Cement vs. Zijin Mining Group
Performance |
| Timeline |
| Tangshan Jidong Cement |
| Zijin Mining Group |
Tangshan Jidong and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangshan Jidong and Zijin Mining
The main advantage of trading using opposite Tangshan Jidong and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangshan Jidong 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.| Tangshan Jidong vs. Holitech Technology Co | Tangshan Jidong vs. GigaDevice SemiconductorBeiji | Tangshan Jidong vs. Union Semiconductor Co | Tangshan Jidong vs. Vontron Technology Co |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Hoshine Silicon Ind |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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