Correlation Between HOCHSCHILD MINING and China Communications
Can any of the company-specific risk be diversified away by investing in both HOCHSCHILD MINING and China Communications 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 China Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOCHSCHILD MINING and China Communications Services, you can compare the effects of market volatilities on HOCHSCHILD MINING and China Communications 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 China Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOCHSCHILD MINING and China Communications.
Diversification Opportunities for HOCHSCHILD MINING and China Communications
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HOCHSCHILD and China is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding HOCHSCHILD MINING and China Communications Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Communications 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 China Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Communications has no effect on the direction of HOCHSCHILD MINING i.e., HOCHSCHILD MINING and China Communications go up and down completely randomly.
Pair Corralation between HOCHSCHILD MINING and China Communications
Assuming the 90 days trading horizon HOCHSCHILD MINING is expected to generate 1.18 times more return on investment than China Communications. However, HOCHSCHILD MINING is 1.18 times more volatile than China Communications Services. It trades about 0.38 of its potential returns per unit of risk. China Communications Services is currently generating about -0.39 per unit of risk. If you would invest 293.00 in HOCHSCHILD MINING on January 18, 2025 and sell it today you would earn a total of 83.00 from holding HOCHSCHILD MINING or generate 28.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOCHSCHILD MINING vs. China Communications Services
Performance |
| Timeline |
| HOCHSCHILD MINING |
| China Communications |
HOCHSCHILD MINING and China Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOCHSCHILD MINING and China Communications
The main advantage of trading using opposite HOCHSCHILD MINING and China Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOCHSCHILD MINING position performs unexpectedly, China Communications 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 China Communications will offset losses from the drop in China Communications' long position.| HOCHSCHILD MINING vs. Cardinal Health | HOCHSCHILD MINING vs. BE Semiconductor Industries | HOCHSCHILD MINING vs. SHIP HEALTHCARE HLDGINC | HOCHSCHILD MINING vs. Bumrungrad Hospital Public |
| China Communications vs. T Mobile | China Communications vs. China Mobile Limited | China Communications vs. Verizon Communications | China Communications vs. ATT Inc |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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