Correlation Between METALL ZUG and Hochschild Mining
Can any of the company-specific risk be diversified away by investing in both METALL ZUG 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 METALL ZUG and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between METALL ZUG AG and Hochschild Mining plc, you can compare the effects of market volatilities on METALL ZUG 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 METALL ZUG with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of METALL ZUG and Hochschild Mining.
Diversification Opportunities for METALL ZUG and Hochschild Mining
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between METALL and Hochschild is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding METALL ZUG AG 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 METALL ZUG 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 METALL ZUG AG 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 METALL ZUG i.e., METALL ZUG and Hochschild Mining go up and down completely randomly.
Pair Corralation between METALL ZUG and Hochschild Mining
Assuming the 90 days trading horizon METALL ZUG AG is expected to under-perform the Hochschild Mining. But the stock apears to be less risky and, when comparing its historical volatility, METALL ZUG AG is 2.29 times less risky than Hochschild Mining. The stock trades about -0.04 of its potential returns per unit of risk. The Hochschild Mining plc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 21,450 in Hochschild Mining plc on September 13, 2024 and sell it today you would earn a total of 2,450 from holding Hochschild Mining plc or generate 11.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
METALL ZUG AG vs. Hochschild Mining plc
Performance |
| Timeline |
| METALL ZUG AG |
| Hochschild Mining plc |
METALL ZUG and Hochschild Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with METALL ZUG and Hochschild Mining
The main advantage of trading using opposite METALL ZUG and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METALL ZUG 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.| METALL ZUG vs. Symphony Environmental Technologies | METALL ZUG vs. Alaska Air Group | METALL ZUG vs. Bloomsbury Publishing Plc | METALL ZUG vs. Porvair plc |
| Hochschild Mining vs. Givaudan SA | Hochschild Mining vs. Antofagasta PLC | Hochschild Mining vs. Ferrexpo PLC | Hochschild Mining vs. Atalaya 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |