Correlation Between Hochschild Mining and China Gas
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and China Gas 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 China Gas 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 China Gas Holdings, you can compare the effects of market volatilities on Hochschild Mining and China Gas 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 China Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and China Gas.
Diversification Opportunities for Hochschild Mining and China Gas
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hochschild and China is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining PLC and China Gas Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Gas Holdings 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 China Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Gas Holdings has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and China Gas go up and down completely randomly.
Pair Corralation between Hochschild Mining and China Gas
Assuming the 90 days horizon Hochschild Mining PLC is expected to under-perform the China Gas. In addition to that, Hochschild Mining is 4.49 times more volatile than China Gas Holdings. It trades about -0.1 of its total potential returns per unit of risk. China Gas Holdings is currently generating about -0.05 per unit of volatility. If you would invest 85.00 in China Gas Holdings on November 2, 2024 and sell it today you would lose (1.00) from holding China Gas Holdings or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochschild Mining PLC vs. China Gas Holdings
Performance |
| Timeline |
| Hochschild Mining PLC |
| China Gas Holdings |
Hochschild Mining and China Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and China Gas
The main advantage of trading using opposite Hochschild Mining and China Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, China Gas 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 China Gas will offset losses from the drop in China Gas' long position.| Hochschild Mining vs. Radisson Mining Resources | Hochschild Mining vs. Big Ridge Gold | Hochschild Mining vs. Cerrado Gold | Hochschild Mining vs. Orogen Royalties |
| China Gas vs. Playtech plc | China Gas vs. Summa Silver Corp | China Gas vs. Planet Fitness | China Gas vs. Perseus Mining Limited |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |