Correlation Between Hochschild Mining and Baywa AG
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By analyzing existing cross correlation between Hochschild Mining plc and Baywa AG Vink, you can compare the effects of market volatilities on Hochschild Mining and Baywa AG 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 Baywa AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Baywa AG.
Diversification Opportunities for Hochschild Mining and Baywa AG
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hochschild and Baywa is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Baywa AG Vink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baywa AG Vink 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 plc are associated (or correlated) with Baywa AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baywa AG Vink has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Baywa AG go up and down completely randomly.
Pair Corralation between Hochschild Mining and Baywa AG
Assuming the 90 days horizon Hochschild Mining plc is expected to generate 0.99 times more return on investment than Baywa AG. However, Hochschild Mining plc is 1.01 times less risky than Baywa AG. It trades about 0.11 of its potential returns per unit of risk. Baywa AG Vink is currently generating about -0.07 per unit of risk. If you would invest 93.00 in Hochschild Mining plc on September 12, 2024 and sell it today you would earn a total of 181.00 from holding Hochschild Mining plc or generate 194.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Hochschild Mining plc vs. Baywa AG Vink
Performance |
| Timeline |
| Hochschild Mining plc |
| Baywa AG Vink |
Hochschild Mining and Baywa AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Baywa AG
The main advantage of trading using opposite Hochschild Mining and Baywa AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Baywa AG 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 Baywa AG will offset losses from the drop in Baywa AG's long position.| Hochschild Mining vs. Franco Nevada | Hochschild Mining vs. Superior Plus Corp | Hochschild Mining vs. SIVERS SEMICONDUCTORS AB | Hochschild Mining vs. Norsk Hydro ASA |
| Baywa AG vs. Coor Service Management | Baywa AG vs. Waste Management | Baywa AG vs. Platinum Investment Management | Baywa AG vs. Brockhaus Capital Management |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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