Correlation Between Hochschild Mining and DigiAsia Corp
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and DigiAsia Corp 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 DigiAsia Corp 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 DigiAsia Corp, you can compare the effects of market volatilities on Hochschild Mining and DigiAsia Corp 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 DigiAsia Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and DigiAsia Corp.
Diversification Opportunities for Hochschild Mining and DigiAsia Corp
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hochschild and DigiAsia is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining PLC and DigiAsia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiAsia Corp 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 DigiAsia Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiAsia Corp has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and DigiAsia Corp go up and down completely randomly.
Pair Corralation between Hochschild Mining and DigiAsia Corp
Assuming the 90 days horizon Hochschild Mining PLC is expected to generate 0.55 times more return on investment than DigiAsia Corp. However, Hochschild Mining PLC is 1.82 times less risky than DigiAsia Corp. It trades about -0.24 of its potential returns per unit of risk. DigiAsia Corp is currently generating about -0.44 per unit of risk. If you would invest 273.00 in Hochschild Mining PLC on November 4, 2024 and sell it today you would lose (58.00) from holding Hochschild Mining PLC or give up 21.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochschild Mining PLC vs. DigiAsia Corp
Performance |
| Timeline |
| Hochschild Mining PLC |
| DigiAsia Corp |
Hochschild Mining and DigiAsia Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and DigiAsia Corp
The main advantage of trading using opposite Hochschild Mining and DigiAsia Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, DigiAsia Corp 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 DigiAsia Corp will offset losses from the drop in DigiAsia Corp's long position.| Hochschild Mining vs. Radisson Mining Resources | Hochschild Mining vs. Big Ridge Gold | Hochschild Mining vs. Cerrado Gold | Hochschild Mining vs. Orogen Royalties |
| DigiAsia Corp vs. Udemy Inc | DigiAsia Corp vs. Cheche Group Class | DigiAsia Corp vs. Arrow Electronics | DigiAsia Corp vs. GMO Internet |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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