Correlation Between Air New and HOCHSCHILD MINING
Can any of the company-specific risk be diversified away by investing in both Air New 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 Air New and HOCHSCHILD MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air New Zealand and HOCHSCHILD MINING, you can compare the effects of market volatilities on Air New 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 Air New with a short position of HOCHSCHILD MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air New and HOCHSCHILD MINING.
Diversification Opportunities for Air New and HOCHSCHILD MINING
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Air and HOCHSCHILD is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Air New Zealand and HOCHSCHILD MINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOCHSCHILD MINING and Air New 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 Air New Zealand 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 has no effect on the direction of Air New i.e., Air New and HOCHSCHILD MINING go up and down completely randomly.
Pair Corralation between Air New and HOCHSCHILD MINING
Assuming the 90 days trading horizon Air New is expected to generate 140.18 times less return on investment than HOCHSCHILD MINING. But when comparing it to its historical volatility, Air New Zealand is 1.93 times less risky than HOCHSCHILD MINING. It trades about 0.0 of its potential returns per unit of risk. HOCHSCHILD MINING is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 88.00 in HOCHSCHILD MINING on October 13, 2024 and sell it today you would earn a total of 190.00 from holding HOCHSCHILD MINING or generate 215.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air New Zealand vs. HOCHSCHILD MINING
Performance |
| Timeline |
| Air New Zealand |
| HOCHSCHILD MINING |
Air New and HOCHSCHILD MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air New and HOCHSCHILD MINING
The main advantage of trading using opposite Air New and HOCHSCHILD MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air New 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.| Air New vs. Canadian Utilities Limited | Air New vs. Geely Automobile Holdings | Air New vs. T Mobile | Air New vs. ENVVENO MEDICAL DL 00001 |
| HOCHSCHILD MINING vs. Air New Zealand | HOCHSCHILD MINING vs. RYANAIR HLDGS ADR | HOCHSCHILD MINING vs. MARKET VECTR RETAIL | HOCHSCHILD MINING vs. H2O Retailing |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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