Correlation Between Hochschild Mining and CI GAMES
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and CI GAMES 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 CI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hochschild Mining plc and CI GAMES SA, you can compare the effects of market volatilities on Hochschild Mining and CI GAMES 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 CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and CI GAMES.
Diversification Opportunities for Hochschild Mining and CI GAMES
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hochschild and CI7 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and CI GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI GAMES SA 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 CI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI GAMES SA has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and CI GAMES go up and down completely randomly.
Pair Corralation between Hochschild Mining and CI GAMES
Assuming the 90 days horizon Hochschild Mining plc is expected to generate 0.73 times more return on investment than CI GAMES. However, Hochschild Mining plc is 1.37 times less risky than CI GAMES. It trades about 0.1 of its potential returns per unit of risk. CI GAMES SA is currently generating about -0.03 per unit of risk. If you would invest 120.00 in Hochschild Mining plc on September 1, 2024 and sell it today you would earn a total of 136.00 from holding Hochschild Mining plc or generate 113.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochschild Mining plc vs. CI GAMES SA
Performance |
| Timeline |
| Hochschild Mining plc |
| CI GAMES SA |
Hochschild Mining and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and CI GAMES
The main advantage of trading using opposite Hochschild Mining and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, CI GAMES 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 CI GAMES will offset losses from the drop in CI GAMES's long position.| Hochschild Mining vs. ZIJIN MINH UNSPADR20 | Hochschild Mining vs. Superior Plus Corp | Hochschild Mining vs. NMI Holdings | Hochschild Mining vs. Origin Agritech |
| CI GAMES vs. PT Bank Maybank | CI GAMES vs. REVO INSURANCE SPA | CI GAMES vs. The Hanover Insurance | CI GAMES vs. Webster Financial |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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