Correlation Between Zijin Mining and Fair Isaac
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Fair Isaac 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 Fair Isaac 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 Fair Isaac Corp, you can compare the effects of market volatilities on Zijin Mining and Fair Isaac 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 Fair Isaac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Fair Isaac.
Diversification Opportunities for Zijin Mining and Fair Isaac
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and Fair is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Fair Isaac Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fair Isaac Corp 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 Fair Isaac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fair Isaac Corp has no effect on the direction of Zijin Mining i.e., Zijin Mining and Fair Isaac go up and down completely randomly.
Pair Corralation between Zijin Mining and Fair Isaac
Assuming the 90 days horizon Zijin Mining is expected to generate 1.24 times less return on investment than Fair Isaac. In addition to that, Zijin Mining is 1.59 times more volatile than Fair Isaac Corp. It trades about 0.07 of its total potential returns per unit of risk. Fair Isaac Corp is currently generating about 0.15 per unit of volatility. If you would invest 103,000 in Fair Isaac Corp on September 14, 2024 and sell it today you would earn a total of 108,600 from holding Fair Isaac Corp or generate 105.44% 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. Fair Isaac Corp
Performance |
| Timeline |
| Zijin Mining Group |
| Fair Isaac Corp |
Zijin Mining and Fair Isaac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Fair Isaac
The main advantage of trading using opposite Zijin Mining and Fair Isaac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Fair Isaac 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 Fair Isaac will offset losses from the drop in Fair Isaac's long position.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Vale SA | Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. SIVERS SEMICONDUCTORS AB |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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