Correlation Between Hochschild Mining and DAX Index
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By analyzing existing cross correlation between Hochschild Mining plc and DAX Index, you can compare the effects of market volatilities on Hochschild Mining and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and DAX Index.
Diversification Opportunities for Hochschild Mining and DAX Index
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hochschild and DAX is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and DAX Index go up and down completely randomly.
Pair Corralation between Hochschild Mining and DAX Index
Assuming the 90 days horizon Hochschild Mining plc is expected to generate 1.93 times more return on investment than DAX Index. However, Hochschild Mining is 1.93 times more volatile than DAX Index. It trades about 0.37 of its potential returns per unit of risk. DAX Index is currently generating about -0.16 per unit of risk. If you would invest 227.00 in Hochschild Mining plc on January 10, 2025 and sell it today you would earn a total of 84.00 from holding Hochschild Mining plc or generate 37.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hochschild Mining plc vs. DAX Index
Performance |
| Timeline |
Hochschild Mining and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Hochschild Mining plc
Pair trading matchups for Hochschild Mining
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Hochschild Mining and DAX Index
The main advantage of trading using opposite Hochschild Mining and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| Hochschild Mining vs. FANDIFI TECHNOLOGY P | Hochschild Mining vs. HK Electric Investments | Hochschild Mining vs. Easy Software AG | Hochschild Mining vs. Genco Shipping Trading |
| DAX Index vs. Moneysupermarket Group PLC | DAX Index vs. PPHE HOTEL GROUP | DAX Index vs. Suntory Beverage Food | DAX Index vs. MHP Hotel AG |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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