Correlation Between Gaztransport and Hochschild Mining
Can any of the company-specific risk be diversified away by investing in both Gaztransport 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 Gaztransport and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport et Technigaz and Hochschild Mining plc, you can compare the effects of market volatilities on Gaztransport 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 Gaztransport with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Hochschild Mining.
Diversification Opportunities for Gaztransport and Hochschild Mining
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and Hochschild is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz 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 Gaztransport 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 Gaztransport et Technigaz 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 Gaztransport i.e., Gaztransport and Hochschild Mining go up and down completely randomly.
Pair Corralation between Gaztransport and Hochschild Mining
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 0.47 times more return on investment than Hochschild Mining. However, Gaztransport et Technigaz is 2.14 times less risky than Hochschild Mining. It trades about 0.16 of its potential returns per unit of risk. Hochschild Mining plc is currently generating about -0.09 per unit of risk. If you would invest 13,656 in Gaztransport et Technigaz on August 27, 2024 and sell it today you would earn a total of 549.00 from holding Gaztransport et Technigaz or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Hochschild Mining plc
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Hochschild Mining plc |
Gaztransport and Hochschild Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Hochschild Mining
The main advantage of trading using opposite Gaztransport and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport 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.| Gaztransport vs. Litigation Capital Management | Gaztransport vs. Allianz Technology Trust | Gaztransport vs. Vitec Software Group | Gaztransport vs. Pfeiffer Vacuum Technology |
| Hochschild Mining vs. Wheaton Precious Metals | Hochschild Mining vs. Coeur Mining | Hochschild Mining vs. Capital Drilling | Hochschild Mining vs. Thor Mining PLC |
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..
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |