Correlation Between Zijin Mining and Intel
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on Zijin Mining and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Intel.
Diversification Opportunities for Zijin Mining and Intel
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zijin and Intel is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Zijin Mining i.e., Zijin Mining and Intel go up and down completely randomly.
Pair Corralation between Zijin Mining and Intel
Assuming the 90 days horizon Zijin Mining Group is expected to generate 0.87 times more return on investment than Intel. However, Zijin Mining Group is 1.15 times less risky than Intel. It trades about 0.07 of its potential returns per unit of risk. Intel is currently generating about -0.19 per unit of risk. If you would invest 177.00 in Zijin Mining Group on September 14, 2024 and sell it today you would earn a total of 7.00 from holding Zijin Mining Group or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Intel
Performance |
| Timeline |
| Zijin Mining Group |
| Intel |
Zijin Mining and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Intel
The main advantage of trading using opposite Zijin Mining and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel'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 |
| Intel vs. ELECTRONIC ARTS | Intel vs. Zijin Mining Group | Intel vs. MINCO SILVER | Intel vs. Harmony Gold Mining |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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