Correlation Between FUYO GENERAL and Hochschild Mining
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL 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 FUYO GENERAL and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and Hochschild Mining plc, you can compare the effects of market volatilities on FUYO GENERAL 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 FUYO GENERAL with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and Hochschild Mining.
Diversification Opportunities for FUYO GENERAL and Hochschild Mining
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FUYO and Hochschild is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE 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 FUYO GENERAL 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 FUYO GENERAL LEASE 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 FUYO GENERAL i.e., FUYO GENERAL and Hochschild Mining go up and down completely randomly.
Pair Corralation between FUYO GENERAL and Hochschild Mining
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to generate 0.45 times more return on investment than Hochschild Mining. However, FUYO GENERAL LEASE is 2.21 times less risky than Hochschild Mining. It trades about 0.32 of its potential returns per unit of risk. Hochschild Mining plc is currently generating about -0.06 per unit of risk. If you would invest 6,500 in FUYO GENERAL LEASE on September 5, 2024 and sell it today you would earn a total of 700.00 from holding FUYO GENERAL LEASE or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. Hochschild Mining plc
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| Hochschild Mining plc |
FUYO GENERAL and Hochschild Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and Hochschild Mining
The main advantage of trading using opposite FUYO GENERAL and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL 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.| FUYO GENERAL vs. Texas Roadhouse | FUYO GENERAL vs. Take Two Interactive Software | FUYO GENERAL vs. PSI Software AG | FUYO GENERAL vs. Magic Software Enterprises |
| Hochschild Mining vs. Barrick Gold | Hochschild Mining vs. Superior Plus Corp | Hochschild Mining vs. NMI Holdings | Hochschild Mining vs. Origin Agritech |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |