Correlation Between Tianjin Hi and Zijin Mining
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Zijin Mining Group, you can compare the effects of market volatilities on Tianjin Hi 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 Hi with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Zijin Mining.
Diversification Opportunities for Tianjin Hi and Zijin Mining
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Zijin is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development 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 Hi 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 Hi Tech Development 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 Hi i.e., Tianjin Hi and Zijin Mining go up and down completely randomly.
Pair Corralation between Tianjin Hi and Zijin Mining
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 1.66 times more return on investment than Zijin Mining. However, Tianjin Hi is 1.66 times more volatile than Zijin Mining Group. It trades about 0.15 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.24 per unit of risk. If you would invest 283.00 in Tianjin Hi Tech Development on August 31, 2024 and sell it today you would earn a total of 26.00 from holding Tianjin Hi Tech Development or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Zijin Mining Group
Performance |
| Timeline |
| Tianjin Hi Tech |
| Zijin Mining Group |
Tianjin Hi and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Zijin Mining
The main advantage of trading using opposite Tianjin Hi and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi 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 Hi vs. Kweichow Moutai Co | Tianjin Hi vs. NAURA Technology Group | Tianjin Hi vs. APT Medical | Tianjin Hi vs. Contemporary Amperex Technology |
| Zijin Mining vs. Zhejiang JIULI Hi tech | Zijin Mining vs. FSPG Hi Tech Co | Zijin Mining vs. Guangzhou Haige Communications | Zijin Mining vs. Tianjin Hi Tech Development |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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