Correlation Between Zijin Mining and Sichuan Tianqi
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By analyzing existing cross correlation between Zijin Mining Group and Sichuan Tianqi Lithium, you can compare the effects of market volatilities on Zijin Mining and Sichuan Tianqi 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 Tianqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Sichuan Tianqi.
Diversification Opportunities for Zijin Mining and Sichuan Tianqi
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Sichuan is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Sichuan Tianqi Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Tianqi Lithium 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 Tianqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Tianqi Lithium has no effect on the direction of Zijin Mining i.e., Zijin Mining and Sichuan Tianqi go up and down completely randomly.
Pair Corralation between Zijin Mining and Sichuan Tianqi
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 0.75 times more return on investment than Sichuan Tianqi. However, Zijin Mining Group is 1.34 times less risky than Sichuan Tianqi. It trades about 0.05 of its potential returns per unit of risk. Sichuan Tianqi Lithium is currently generating about -0.04 per unit of risk. If you would invest 1,022 in Zijin Mining Group on September 26, 2024 and sell it today you would earn a total of 541.00 from holding Zijin Mining Group or generate 52.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Zijin Mining Group vs. Sichuan Tianqi Lithium
Performance |
| Timeline |
| Zijin Mining Group |
| Sichuan Tianqi Lithium |
Zijin Mining and Sichuan Tianqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Sichuan Tianqi
The main advantage of trading using opposite Zijin Mining and Sichuan Tianqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Sichuan Tianqi 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 Tianqi will offset losses from the drop in Sichuan Tianqi's long position.| Zijin Mining vs. Wanhua Chemical Group | Zijin Mining vs. Shandong Gold Mining | Zijin Mining vs. Rongsheng Petrochemical Co | Zijin Mining vs. Inner Mongolia BaoTou |
| Sichuan Tianqi vs. Zijin Mining Group | Sichuan Tianqi vs. Baoshan Iron Steel | Sichuan Tianqi vs. Shandong Gold Mining | Sichuan Tianqi vs. Rongsheng Petrochemical 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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