Correlation Between Tianjin Ruixin and Zijin Mining
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By analyzing existing cross correlation between Tianjin Ruixin Technology and Zijin Mining Group, you can compare the effects of market volatilities on Tianjin Ruixin 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 Tianjin Ruixin with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and Zijin Mining.
Diversification Opportunities for Tianjin Ruixin and Zijin Mining
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Zijin is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin 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 Tianjin Ruixin 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 Tianjin Ruixin 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 Tianjin Ruixin i.e., Tianjin Ruixin and Zijin Mining go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and Zijin Mining
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to generate 1.36 times more return on investment than Zijin Mining. However, Tianjin Ruixin is 1.36 times more volatile than Zijin Mining Group. It trades about 0.14 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.28 per unit of risk. If you would invest 1,352 in Tianjin Ruixin Technology on September 4, 2024 and sell it today you would earn a total of 92.00 from holding Tianjin Ruixin Technology or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Ruixin Technology vs. Zijin Mining Group
Performance |
| Timeline |
| Tianjin Ruixin Technology |
| Zijin Mining Group |
Tianjin Ruixin and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Ruixin and Zijin Mining
The main advantage of trading using opposite Tianjin Ruixin and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin 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.| Tianjin Ruixin vs. Zijin Mining Group | Tianjin Ruixin vs. Wanhua Chemical Group | Tianjin Ruixin vs. Baoshan Iron Steel | Tianjin Ruixin vs. Rongsheng Petrochemical Co |
| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Baoshan Iron Steel | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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