Correlation Between Zijin Mining and Tibet Summit
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By analyzing existing cross correlation between Zijin Mining Group and Tibet Summit Resources, you can compare the effects of market volatilities on Zijin Mining and Tibet Summit 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 Tibet Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Tibet Summit.
Diversification Opportunities for Zijin Mining and Tibet Summit
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zijin and Tibet is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Tibet Summit Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Summit Resources 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 Tibet Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Summit Resources has no effect on the direction of Zijin Mining i.e., Zijin Mining and Tibet Summit go up and down completely randomly.
Pair Corralation between Zijin Mining and Tibet Summit
Assuming the 90 days trading horizon Zijin Mining Group is expected to under-perform the Tibet Summit. But the stock apears to be less risky and, when comparing its historical volatility, Zijin Mining Group is 1.28 times less risky than Tibet Summit. The stock trades about -0.02 of its potential returns per unit of risk. The Tibet Summit Resources is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 956.00 in Tibet Summit Resources on September 3, 2024 and sell it today you would earn a total of 238.00 from holding Tibet Summit Resources or generate 24.9% 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. Tibet Summit Resources
Performance |
| Timeline |
| Zijin Mining Group |
| Tibet Summit Resources |
Zijin Mining and Tibet Summit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Tibet Summit
The main advantage of trading using opposite Zijin Mining and Tibet Summit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Tibet Summit 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 Tibet Summit will offset losses from the drop in Tibet Summit's long position.The idea behind Zijin Mining Group and Tibet Summit Resources 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.| Tibet Summit vs. Shanghai Ziyan Foods | Tibet Summit vs. Xiangyu Medical Co | Tibet Summit vs. Great Sun Foods Co | Tibet Summit vs. Shantou Wanshun Package |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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