Correlation Between Sichuan Yahua and Zijin Mining
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Zijin Mining Group, you can compare the effects of market volatilities on Sichuan Yahua 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 Sichuan Yahua with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Zijin Mining.
Diversification Opportunities for Sichuan Yahua and Zijin Mining
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and Zijin is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial 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 Sichuan Yahua 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 Sichuan Yahua Industrial 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 Sichuan Yahua i.e., Sichuan Yahua and Zijin Mining go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Zijin Mining
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.77 times more return on investment than Zijin Mining. However, Sichuan Yahua is 1.77 times more volatile than Zijin Mining Group. It trades about 0.13 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.14 per unit of risk. If you would invest 989.00 in Sichuan Yahua Industrial on August 28, 2024 and sell it today you would earn a total of 169.00 from holding Sichuan Yahua Industrial or generate 17.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Zijin Mining Group
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Zijin Mining Group |
Sichuan Yahua and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Zijin Mining
The main advantage of trading using opposite Sichuan Yahua and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua 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.| Sichuan Yahua vs. Zijin Mining Group | Sichuan Yahua vs. Wanhua Chemical Group | Sichuan Yahua vs. Baoshan Iron Steel | Sichuan Yahua vs. Shandong Gold Mining |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Inner Mongolia BaoTou |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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