Correlation Between Firan Technology and Hochschild Mining
Can any of the company-specific risk be diversified away by investing in both Firan Technology 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 Firan Technology and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firan Technology Group and Hochschild Mining plc, you can compare the effects of market volatilities on Firan Technology 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 Firan Technology with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Hochschild Mining.
Diversification Opportunities for Firan Technology and Hochschild Mining
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Firan and Hochschild is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group 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 Firan Technology 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 Firan Technology Group 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 Firan Technology i.e., Firan Technology and Hochschild Mining go up and down completely randomly.
Pair Corralation between Firan Technology and Hochschild Mining
Assuming the 90 days trading horizon Firan Technology Group is expected to under-perform the Hochschild Mining. But the stock apears to be less risky and, when comparing its historical volatility, Firan Technology Group is 1.86 times less risky than Hochschild Mining. The stock trades about -0.07 of its potential returns per unit of risk. The Hochschild Mining plc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 273.00 in Hochschild Mining plc on October 13, 2024 and sell it today you would earn a total of 5.00 from holding Hochschild Mining plc or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. Hochschild Mining plc
Performance |
| Timeline |
| Firan Technology |
| Hochschild Mining plc |
Firan Technology and Hochschild Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and Hochschild Mining
The main advantage of trading using opposite Firan Technology and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology 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.| Firan Technology vs. Gaztransport Technigaz SA | Firan Technology vs. ScanSource | Firan Technology vs. TITANIUM TRANSPORTGROUP | Firan Technology vs. SCANSOURCE |
| Hochschild Mining vs. HK Electric Investments | Hochschild Mining vs. Firan Technology Group | Hochschild Mining vs. Guangdong Investment Limited | Hochschild Mining vs. ECHO INVESTMENT ZY |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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