Correlation Between HOCHSCHILD MINING and ATHENE HOLDING
Can any of the company-specific risk be diversified away by investing in both HOCHSCHILD MINING and ATHENE HOLDING 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 ATHENE HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOCHSCHILD MINING and ATHENE HOLDING PRFSERC, you can compare the effects of market volatilities on HOCHSCHILD MINING and ATHENE HOLDING 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 ATHENE HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOCHSCHILD MINING and ATHENE HOLDING.
Diversification Opportunities for HOCHSCHILD MINING and ATHENE HOLDING
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HOCHSCHILD and ATHENE is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding HOCHSCHILD MINING and ATHENE HOLDING PRFSERC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HOLDING PRFSERC 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 ATHENE HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATHENE HOLDING PRFSERC has no effect on the direction of HOCHSCHILD MINING i.e., HOCHSCHILD MINING and ATHENE HOLDING go up and down completely randomly.
Pair Corralation between HOCHSCHILD MINING and ATHENE HOLDING
Assuming the 90 days trading horizon HOCHSCHILD MINING is expected to generate 4.78 times more return on investment than ATHENE HOLDING. However, HOCHSCHILD MINING is 4.78 times more volatile than ATHENE HOLDING PRFSERC. It trades about 0.13 of its potential returns per unit of risk. ATHENE HOLDING PRFSERC is currently generating about 0.09 per unit of risk. If you would invest 100.00 in HOCHSCHILD MINING on October 18, 2024 and sell it today you would earn a total of 159.00 from holding HOCHSCHILD MINING or generate 159.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
HOCHSCHILD MINING vs. ATHENE HOLDING PRFSERC
Performance |
| Timeline |
| HOCHSCHILD MINING |
| ATHENE HOLDING PRFSERC |
HOCHSCHILD MINING and ATHENE HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOCHSCHILD MINING and ATHENE HOLDING
The main advantage of trading using opposite HOCHSCHILD MINING and ATHENE HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOCHSCHILD MINING position performs unexpectedly, ATHENE HOLDING 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 ATHENE HOLDING will offset losses from the drop in ATHENE HOLDING's long position.| HOCHSCHILD MINING vs. Globex Mining Enterprises | HOCHSCHILD MINING vs. MINCO SILVER | HOCHSCHILD MINING vs. NH HOTEL GROUP | HOCHSCHILD MINING vs. Harmony Gold Mining |
| ATHENE HOLDING vs. HOCHSCHILD MINING | ATHENE HOLDING vs. AWILCO DRILLING PLC | ATHENE HOLDING vs. Transport International Holdings | ATHENE HOLDING vs. Boyd Gaming |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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