Correlation Between SBA Communications and Hochschild Mining
Can any of the company-specific risk be diversified away by investing in both SBA Communications 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 SBA Communications and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBA Communications Corp and Hochschild Mining plc, you can compare the effects of market volatilities on SBA Communications 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 SBA Communications with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBA Communications and Hochschild Mining.
Diversification Opportunities for SBA Communications and Hochschild Mining
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SBA and Hochschild is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SBA Communications Corp 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 SBA Communications 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 SBA Communications Corp 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 SBA Communications i.e., SBA Communications and Hochschild Mining go up and down completely randomly.
Pair Corralation between SBA Communications and Hochschild Mining
Assuming the 90 days trading horizon SBA Communications Corp is expected to under-perform the Hochschild Mining. But the stock apears to be less risky and, when comparing its historical volatility, SBA Communications Corp is 2.21 times less risky than Hochschild Mining. The stock trades about -0.01 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 103.00 in Hochschild Mining plc on November 27, 2024 and sell it today you would earn a total of 122.00 from holding Hochschild Mining plc or generate 118.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBA Communications Corp vs. Hochschild Mining plc
Performance |
| Timeline |
| SBA Communications Corp |
| Hochschild Mining plc |
SBA Communications and Hochschild Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBA Communications and Hochschild Mining
The main advantage of trading using opposite SBA Communications and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBA Communications 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.| SBA Communications vs. Tradeweb Markets | SBA Communications vs. Cognizant Technology Solutions | SBA Communications vs. RETAIL FOOD GROUP | SBA Communications vs. FLOW TRADERS LTD |
| Hochschild Mining vs. JIAHUA STORES | Hochschild Mining vs. Evolent Health | Hochschild Mining vs. AEON STORES | Hochschild Mining vs. Scandinavian Tobacco Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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