Correlation Between Hochschild Mining and JINHUI SHIPPING
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and JINHUI SHIPPING 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 JINHUI SHIPPING 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 JINHUI SHIPPING, you can compare the effects of market volatilities on Hochschild Mining and JINHUI SHIPPING 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 JINHUI SHIPPING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and JINHUI SHIPPING.
Diversification Opportunities for Hochschild Mining and JINHUI SHIPPING
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hochschild and JINHUI is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and JINHUI SHIPPING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINHUI SHIPPING 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 JINHUI SHIPPING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINHUI SHIPPING has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and JINHUI SHIPPING go up and down completely randomly.
Pair Corralation between Hochschild Mining and JINHUI SHIPPING
Assuming the 90 days horizon Hochschild Mining plc is expected to generate 1.55 times more return on investment than JINHUI SHIPPING. However, Hochschild Mining is 1.55 times more volatile than JINHUI SHIPPING. It trades about 0.24 of its potential returns per unit of risk. JINHUI SHIPPING is currently generating about -0.12 per unit of risk. If you would invest 250.00 in Hochschild Mining plc on September 14, 2024 and sell it today you would earn a total of 41.00 from holding Hochschild Mining plc or generate 16.4% 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. JINHUI SHIPPING
Performance |
| Timeline |
| Hochschild Mining plc |
| JINHUI SHIPPING |
Hochschild Mining and JINHUI SHIPPING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and JINHUI SHIPPING
The main advantage of trading using opposite Hochschild Mining and JINHUI SHIPPING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, JINHUI SHIPPING 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 JINHUI SHIPPING will offset losses from the drop in JINHUI SHIPPING's long position.| Hochschild Mining vs. Eidesvik Offshore ASA | Hochschild Mining vs. Perseus Mining Limited | Hochschild Mining vs. Zijin Mining Group | Hochschild Mining vs. SOLSTAD OFFSHORE NK |
| JINHUI SHIPPING vs. MCEWEN MINING INC | JINHUI SHIPPING vs. GAMESTOP | JINHUI SHIPPING vs. GALENA MINING LTD | JINHUI SHIPPING vs. Hochschild Mining plc |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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