Correlation Between Hochschild Mining and Intel
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on Hochschild Mining and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Intel.
Diversification Opportunities for Hochschild Mining and Intel
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hochschild and Intel is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Intel go up and down completely randomly.
Pair Corralation between Hochschild Mining and Intel
Assuming the 90 days horizon Hochschild Mining plc is expected to generate 1.15 times more return on investment than Intel. However, Hochschild Mining is 1.15 times more volatile than Intel. It trades about 0.0 of its potential returns per unit of risk. Intel is currently generating about -0.3 per unit of risk. If you would invest 277.00 in Hochschild Mining plc on September 12, 2024 and sell it today you would lose (3.00) from holding Hochschild Mining plc or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hochschild Mining plc vs. Intel
Performance |
| Timeline |
| Hochschild Mining plc |
| Intel |
Hochschild Mining and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Intel
The main advantage of trading using opposite Hochschild Mining and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel'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 |
| Intel vs. BRIT AMER TOBACCO | Intel vs. Jupiter Fund Management | Intel vs. ETFS Coffee ETC | Intel vs. SWISS WATER DECAFFCOFFEE |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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