Correlation Between HOCHSCHILD MINING and Kemper
Can any of the company-specific risk be diversified away by investing in both HOCHSCHILD MINING and Kemper 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 Kemper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOCHSCHILD MINING and Kemper, you can compare the effects of market volatilities on HOCHSCHILD MINING and Kemper 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 Kemper. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOCHSCHILD MINING and Kemper.
Diversification Opportunities for HOCHSCHILD MINING and Kemper
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HOCHSCHILD and Kemper is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding HOCHSCHILD MINING and Kemper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kemper 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 Kemper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kemper has no effect on the direction of HOCHSCHILD MINING i.e., HOCHSCHILD MINING and Kemper go up and down completely randomly.
Pair Corralation between HOCHSCHILD MINING and Kemper
Assuming the 90 days trading horizon HOCHSCHILD MINING is expected to generate 1.7 times more return on investment than Kemper. However, HOCHSCHILD MINING is 1.7 times more volatile than Kemper. It trades about 0.12 of its potential returns per unit of risk. Kemper is currently generating about 0.11 per unit of risk. If you would invest 108.00 in HOCHSCHILD MINING on September 4, 2024 and sell it today you would earn a total of 142.00 from holding HOCHSCHILD MINING or generate 131.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOCHSCHILD MINING vs. Kemper
Performance |
| Timeline |
| HOCHSCHILD MINING |
| Kemper |
HOCHSCHILD MINING and Kemper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOCHSCHILD MINING and Kemper
The main advantage of trading using opposite HOCHSCHILD MINING and Kemper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOCHSCHILD MINING position performs unexpectedly, Kemper 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 Kemper will offset losses from the drop in Kemper's long position.| HOCHSCHILD MINING vs. SENECA FOODS A | HOCHSCHILD MINING vs. CN MODERN DAIRY | HOCHSCHILD MINING vs. TYSON FOODS A | HOCHSCHILD MINING vs. Renesas Electronics |
| Kemper vs. WESTLAKE CHEMICAL | Kemper vs. NISSAN CHEMICAL IND | Kemper vs. HOCHSCHILD MINING | Kemper vs. Hochschild Mining plc |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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