Correlation Between SIVERS SEMICONDUCTORS and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Zijin Mining 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 SIVERS SEMICONDUCTORS and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIVERS SEMICONDUCTORS AB and Zijin Mining Group, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Zijin Mining.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Zijin Mining
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SIVERS and Zijin is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB 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 SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS AB 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 SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Zijin Mining go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Zijin Mining
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the Zijin Mining. In addition to that, SIVERS SEMICONDUCTORS is 3.25 times more volatile than Zijin Mining Group. It trades about -0.19 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about -0.07 per unit of volatility. If you would invest 192.00 in Zijin Mining Group on August 31, 2024 and sell it today you would lose (12.00) from holding Zijin Mining Group or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Zijin Mining Group
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Zijin Mining Group |
SIVERS SEMICONDUCTORS and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Zijin Mining
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS 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.| SIVERS SEMICONDUCTORS vs. Strategic Investments AS | SIVERS SEMICONDUCTORS vs. ECHO INVESTMENT ZY | SIVERS SEMICONDUCTORS vs. Genco Shipping Trading | SIVERS SEMICONDUCTORS vs. AOYAMA TRADING |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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