Correlation Between Zijin Mining and Sichuan Fulin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zijin Mining Group and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Zijin Mining and Sichuan Fulin 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 Zijin Mining with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Sichuan Fulin.
Diversification Opportunities for Zijin Mining and Sichuan Fulin
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zijin and Sichuan is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp and Zijin Mining 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 Zijin Mining Group are associated (or correlated) with Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Zijin Mining i.e., Zijin Mining and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Zijin Mining and Sichuan Fulin
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Sichuan Fulin. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.24 times less risky than Sichuan Fulin. The stock trades about -0.24 of its potential returns per unit of risk. The Sichuan Fulin Transportation is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 609.00 in Sichuan Fulin Transportation on August 31, 2024 and sell it today you would earn a total of 98.00 from holding Sichuan Fulin Transportation or generate 16.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Zijin Mining Group |
| Sichuan Fulin Transp |
Zijin Mining and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Sichuan Fulin
The main advantage of trading using opposite Zijin Mining and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin's long position.The idea behind Zijin Mining Group and Sichuan Fulin Transportation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sichuan Fulin vs. Cultural Investment Holdings | Sichuan Fulin vs. Gome Telecom Equipment | Sichuan Fulin vs. Bus Online Co | Sichuan Fulin vs. Holitech Technology Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |