Correlation Between Hochschild Mining and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Deutsche Post 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 Deutsche Post 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 Deutsche Post AG, you can compare the effects of market volatilities on Hochschild Mining and Deutsche Post 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 Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Deutsche Post.
Diversification Opportunities for Hochschild Mining and Deutsche Post
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hochschild and Deutsche is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG 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 Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Deutsche Post go up and down completely randomly.
Pair Corralation between Hochschild Mining and Deutsche Post
Assuming the 90 days trading horizon Hochschild Mining plc is expected to generate 2.04 times more return on investment than Deutsche Post. However, Hochschild Mining is 2.04 times more volatile than Deutsche Post AG. It trades about 0.1 of its potential returns per unit of risk. Deutsche Post AG is currently generating about 0.0 per unit of risk. If you would invest 7,840 in Hochschild Mining plc on January 24, 2025 and sell it today you would earn a total of 19,740 from holding Hochschild Mining plc or generate 251.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hochschild Mining plc vs. Deutsche Post AG
Performance |
| Timeline |
| Hochschild Mining plc |
| Deutsche Post AG |
Hochschild Mining and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Deutsche Post
The main advantage of trading using opposite Hochschild Mining and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Deutsche Post 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 Deutsche Post will offset losses from the drop in Deutsche Post's long position.| Hochschild Mining vs. Givaudan SA | Hochschild Mining vs. Antofagasta PLC | Hochschild Mining vs. EVRAZ plc | Hochschild Mining vs. Atalaya Mining |
| Deutsche Post vs. Rockfire Resources plc | Deutsche Post vs. Ikigai Ventures | Deutsche Post vs. Falcon Oil Gas | Deutsche Post vs. Pantheon Resources |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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