Correlation Between Sichuan Jinshi and Zijin Mining
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Zijin Mining Group, you can compare the effects of market volatilities on Sichuan Jinshi 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 Jinshi with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Zijin Mining.
Diversification Opportunities for Sichuan Jinshi and Zijin Mining
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sichuan and Zijin is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology 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 Jinshi 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 Jinshi Technology 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 Jinshi i.e., Sichuan Jinshi and Zijin Mining go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Zijin Mining
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to generate 1.33 times more return on investment than Zijin Mining. However, Sichuan Jinshi is 1.33 times more volatile than Zijin Mining Group. It trades about 0.08 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.02 per unit of risk. If you would invest 570.00 in Sichuan Jinshi Technology on September 3, 2024 and sell it today you would earn a total of 143.00 from holding Sichuan Jinshi Technology or generate 25.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Zijin Mining Group
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Zijin Mining Group |
Sichuan Jinshi and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Zijin Mining
The main advantage of trading using opposite Sichuan Jinshi and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi 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 Jinshi vs. Zijin Mining Group | Sichuan Jinshi vs. Baoshan Iron Steel | Sichuan Jinshi 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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