Correlation Between Cars and Hochschild Mining
Can any of the company-specific risk be diversified away by investing in both Cars and Hochschild 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 Cars and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cars Inc and Hochschild Mining plc, you can compare the effects of market volatilities on Cars and Hochschild 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 Cars with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cars and Hochschild Mining.
Diversification Opportunities for Cars and Hochschild Mining
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cars and Hochschild is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cars Inc and Hochschild Mining plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hochschild Mining plc and Cars 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 Cars Inc are associated (or correlated) with Hochschild Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hochschild Mining plc has no effect on the direction of Cars i.e., Cars and Hochschild Mining go up and down completely randomly.
Pair Corralation between Cars and Hochschild Mining
Assuming the 90 days trading horizon Cars Inc is expected to under-perform the Hochschild Mining. In addition to that, Cars is 1.03 times more volatile than Hochschild Mining plc. It trades about -0.12 of its total potential returns per unit of risk. Hochschild Mining plc is currently generating about -0.07 per unit of volatility. If you would invest 22,700 in Hochschild Mining plc on September 21, 2024 and sell it today you would lose (1,100) from holding Hochschild Mining plc or give up 4.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Cars Inc vs. Hochschild Mining plc
Performance |
| Timeline |
| Cars Inc |
| Hochschild Mining plc |
Cars and Hochschild Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cars and Hochschild Mining
The main advantage of trading using opposite Cars and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cars position performs unexpectedly, Hochschild 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 Hochschild Mining will offset losses from the drop in Hochschild Mining's long position.| Cars vs. Samsung Electronics Co | Cars vs. Samsung Electronics Co | Cars vs. Hyundai Motor | Cars vs. Reliance Industries Ltd |
| Hochschild Mining vs. Cars Inc | Hochschild Mining vs. Austevoll Seafood ASA | Hochschild Mining vs. Baker Steel Resources | Hochschild Mining vs. International Biotechnology Trust |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |