Correlation Between Zijin Mining and Titan America

Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Titan America at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Zijin Mining and Titan America into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Zijin Mining Group and Titan America SA, you can compare the effects of market volatilities on Zijin Mining and Titan America 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 Titan America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Titan America.

Diversification Opportunities for Zijin Mining and Titan America

-0.01

Correlation Coefficient

Zijin Mining  Titan America

Good diversification

The 3 months correlation between Zijin and Titan is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Titan America SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Titan America SA 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 Titan America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Titan America SA has no effect on the direction of Zijin Mining i.e., Zijin Mining and Titan America go up and down completely randomly.

Pair Corralation between Zijin Mining and Titan America

Assuming the 90 days horizon Zijin Mining Group is expected to generate 2.16 times more return on investment than Titan America. However, Zijin Mining is 2.16 times more volatile than Titan America SA. It trades about 0.15 of its potential returns per unit of risk. Titan America SA is currently generating about 0.01 per unit of risk. If you would invest  177.00  in Zijin Mining Group on May 6, 2025 and sell it today you would earn a total of  83.00  from holding Zijin Mining Group or generate 46.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Zijin Mining Group  vs.  Titan America SA

Zijin Mining Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zijin Mining Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Zijin Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Titan America SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Titan America SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Titan America is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Zijin Mining and Titan America

The main advantage of trading using opposite Zijin Mining and Titan America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Titan America 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 Titan America will offset losses from the drop in Titan America's long position.

The idea behind Zijin Mining Group and Titan America SA 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.