Correlation Between Hochschild Mining and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on Hochschild Mining and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and EIDESVIK OFFSHORE.
Diversification Opportunities for Hochschild Mining and EIDESVIK OFFSHORE
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hochschild and EIDESVIK is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIDESVIK OFFSHORE has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between Hochschild Mining and EIDESVIK OFFSHORE
Assuming the 90 days horizon Hochschild Mining plc is expected to under-perform the EIDESVIK OFFSHORE. In addition to that, Hochschild Mining is 1.93 times more volatile than EIDESVIK OFFSHORE NK. It trades about -0.07 of its total potential returns per unit of risk. EIDESVIK OFFSHORE NK is currently generating about 0.03 per unit of volatility. If you would invest 116.00 in EIDESVIK OFFSHORE NK on August 24, 2024 and sell it today you would earn a total of 1.00 from holding EIDESVIK OFFSHORE NK or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hochschild Mining plc vs. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| Hochschild Mining plc |
| EIDESVIK OFFSHORE |
Hochschild Mining and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and EIDESVIK OFFSHORE
The main advantage of trading using opposite Hochschild Mining and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE will offset losses from the drop in EIDESVIK OFFSHORE's long position.| Hochschild Mining vs. Sanyo Chemical Industries | Hochschild Mining vs. Eastman Chemical | Hochschild Mining vs. SHIN ETSU CHEMICAL | Hochschild Mining vs. Sumitomo Mitsui Construction |
| EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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