Correlation Between HOCHSCHILD MINING and JinkoSolar Holding
Can any of the company-specific risk be diversified away by investing in both HOCHSCHILD MINING and JinkoSolar 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 JinkoSolar 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 JinkoSolar Holding Co, you can compare the effects of market volatilities on HOCHSCHILD MINING and JinkoSolar 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 JinkoSolar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOCHSCHILD MINING and JinkoSolar Holding.
Diversification Opportunities for HOCHSCHILD MINING and JinkoSolar Holding
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between HOCHSCHILD and JinkoSolar is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding HOCHSCHILD MINING and JinkoSolar Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JinkoSolar Holding 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 JinkoSolar Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JinkoSolar Holding has no effect on the direction of HOCHSCHILD MINING i.e., HOCHSCHILD MINING and JinkoSolar Holding go up and down completely randomly.
Pair Corralation between HOCHSCHILD MINING and JinkoSolar Holding
Assuming the 90 days trading horizon HOCHSCHILD MINING is expected to generate 0.75 times more return on investment than JinkoSolar Holding. However, HOCHSCHILD MINING is 1.33 times less risky than JinkoSolar Holding. It trades about -0.01 of its potential returns per unit of risk. JinkoSolar Holding Co is currently generating about -0.23 per unit of risk. If you would invest 254.00 in HOCHSCHILD MINING on October 24, 2024 and sell it today you would lose (4.00) from holding HOCHSCHILD MINING or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOCHSCHILD MINING vs. JinkoSolar Holding Co
Performance |
| Timeline |
| HOCHSCHILD MINING |
| JinkoSolar Holding |
HOCHSCHILD MINING and JinkoSolar Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOCHSCHILD MINING and JinkoSolar Holding
The main advantage of trading using opposite HOCHSCHILD MINING and JinkoSolar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOCHSCHILD MINING position performs unexpectedly, JinkoSolar 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 JinkoSolar Holding will offset losses from the drop in JinkoSolar Holding's long position.| HOCHSCHILD MINING vs. THAI BEVERAGE | HOCHSCHILD MINING vs. PATTIES FOODS | HOCHSCHILD MINING vs. National Beverage Corp | HOCHSCHILD MINING vs. PURE FOODS TASMANIA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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