Correlation Between HOCHSCHILD MINING and Hua Hong
Can any of the company-specific risk be diversified away by investing in both HOCHSCHILD MINING and Hua Hong 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 HOCHSCHILD MINING and Hua Hong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOCHSCHILD MINING and Hua Hong Semiconductor, you can compare the effects of market volatilities on HOCHSCHILD MINING and Hua Hong 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 HOCHSCHILD MINING with a short position of Hua Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOCHSCHILD MINING and Hua Hong.
Diversification Opportunities for HOCHSCHILD MINING and Hua Hong
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between HOCHSCHILD and Hua is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding HOCHSCHILD MINING and Hua Hong Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Hong Semiconductor and HOCHSCHILD MINING 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 HOCHSCHILD MINING are associated (or correlated) with Hua Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Hong Semiconductor has no effect on the direction of HOCHSCHILD MINING i.e., HOCHSCHILD MINING and Hua Hong go up and down completely randomly.
Pair Corralation between HOCHSCHILD MINING and Hua Hong
Assuming the 90 days trading horizon HOCHSCHILD MINING is expected to under-perform the Hua Hong. In addition to that, HOCHSCHILD MINING is 1.19 times more volatile than Hua Hong Semiconductor. It trades about -0.14 of its total potential returns per unit of risk. Hua Hong Semiconductor is currently generating about 0.18 per unit of volatility. If you would invest 246.00 in Hua Hong Semiconductor on October 30, 2024 and sell it today you would earn a total of 48.00 from holding Hua Hong Semiconductor or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOCHSCHILD MINING vs. Hua Hong Semiconductor
Performance |
| Timeline |
| HOCHSCHILD MINING |
| Hua Hong Semiconductor |
HOCHSCHILD MINING and Hua Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOCHSCHILD MINING and Hua Hong
The main advantage of trading using opposite HOCHSCHILD MINING and Hua Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOCHSCHILD MINING position performs unexpectedly, Hua Hong 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 Hua Hong will offset losses from the drop in Hua Hong's long position.| HOCHSCHILD MINING vs. Broadridge Financial Solutions | HOCHSCHILD MINING vs. Hyatt Hotels | HOCHSCHILD MINING vs. Dalata Hotel Group | HOCHSCHILD MINING vs. Wyndham Hotels Resorts |
| Hua Hong vs. Perseus Mining Limited | Hua Hong vs. Stag Industrial | Hua Hong vs. Compagnie Plastic Omnium | Hua Hong vs. Heidelberg Materials AG |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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