Correlation Between Nordic Semiconductor and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor 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 Nordic Semiconductor and Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Semiconductor ASA and Zijin Mining Group, you can compare the effects of market volatilities on Nordic Semiconductor 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 Nordic Semiconductor with a short position of Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Zijin Mining.
Diversification Opportunities for Nordic Semiconductor and Zijin Mining
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nordic and Zijin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA 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 Nordic Semiconductor 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 Nordic Semiconductor ASA 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 Nordic Semiconductor i.e., Nordic Semiconductor and Zijin Mining go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Zijin Mining
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to generate 0.58 times more return on investment than Zijin Mining. However, Nordic Semiconductor ASA is 1.73 times less risky than Zijin Mining. It trades about 0.17 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.02 per unit of risk. If you would invest 842.00 in Nordic Semiconductor ASA on October 19, 2024 and sell it today you would earn a total of 106.00 from holding Nordic Semiconductor ASA or generate 12.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. Zijin Mining Group
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| Zijin Mining Group |
Nordic Semiconductor and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and Zijin Mining
The main advantage of trading using opposite Nordic Semiconductor and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor 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.| Nordic Semiconductor vs. TIANDE CHEMICAL | Nordic Semiconductor vs. KINGBOARD CHEMICAL | Nordic Semiconductor vs. Siamgas And Petrochemicals | Nordic Semiconductor vs. Mitsubishi Gas Chemical |
| Zijin Mining vs. TOREX SEMICONDUCTOR LTD | Zijin Mining vs. BE Semiconductor Industries | Zijin Mining vs. Nordic Semiconductor ASA | Zijin Mining vs. Tencent Music Entertainment |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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