Correlation Between Zijin Mining and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Amkor Technology 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 Amkor Technology 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 Amkor Technology, you can compare the effects of market volatilities on Zijin Mining and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Amkor Technology.
Diversification Opportunities for Zijin Mining and Amkor Technology
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zijin and Amkor is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Zijin Mining i.e., Zijin Mining and Amkor Technology go up and down completely randomly.
Pair Corralation between Zijin Mining and Amkor Technology
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Amkor Technology. In addition to that, Zijin Mining is 1.54 times more volatile than Amkor Technology. It trades about -0.07 of its total potential returns per unit of risk. Amkor Technology is currently generating about -0.02 per unit of volatility. If you would invest 2,491 in Amkor Technology on August 31, 2024 and sell it today you would lose (36.00) from holding Amkor Technology or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Amkor Technology
Performance |
| Timeline |
| Zijin Mining Group |
| Amkor Technology |
Zijin Mining and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Amkor Technology
The main advantage of trading using opposite Zijin Mining and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Rio Tinto Group |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Advanced Micro Devices | Amkor Technology vs. Intel |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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