Correlation Between Compaa Minera and BHP
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By analyzing existing cross correlation between Compaa Minera Autln and BHP Group, you can compare the effects of market volatilities on Compaa Minera and BHP 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 Compaa Minera with a short position of BHP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compaa Minera and BHP.
Diversification Opportunities for Compaa Minera and BHP
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Compaa and BHP is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Compaa Minera Autln and BHP Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHP Group and Compaa Minera 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 Compaa Minera Autln are associated (or correlated) with BHP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHP Group has no effect on the direction of Compaa Minera i.e., Compaa Minera and BHP go up and down completely randomly.
Pair Corralation between Compaa Minera and BHP
Assuming the 90 days trading horizon Compaa Minera Autln is expected to under-perform the BHP. In addition to that, Compaa Minera is 1.09 times more volatile than BHP Group. It trades about -0.07 of its total potential returns per unit of risk. BHP Group is currently generating about 0.07 per unit of volatility. If you would invest 99,689 in BHP Group on September 12, 2024 and sell it today you would earn a total of 14,231 from holding BHP Group or generate 14.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compaa Minera Autln vs. BHP Group
Performance |
| Timeline |
| Compaa Minera Autln |
| BHP Group |
Compaa Minera and BHP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compaa Minera and BHP
The main advantage of trading using opposite Compaa Minera and BHP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compaa Minera position performs unexpectedly, BHP 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 BHP will offset losses from the drop in BHP's long position.| Compaa Minera vs. Genworth Financial | Compaa Minera vs. Applied Materials | Compaa Minera vs. McEwen Mining | Compaa Minera vs. Cognizant Technology Solutions |
| BHP vs. Compaa Minera Autln | BHP vs. McEwen Mining | BHP vs. The Select Sector | BHP vs. Promotora y Operadora |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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