Correlation Between Hochschild Mining and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on Hochschild Mining and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Jacquet Metal.
Diversification Opportunities for Hochschild Mining and Jacquet Metal
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hochschild and Jacquet is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Jacquet Metal go up and down completely randomly.
Pair Corralation between Hochschild Mining and Jacquet Metal
Assuming the 90 days trading horizon Hochschild Mining plc is expected to generate 1.93 times more return on investment than Jacquet Metal. However, Hochschild Mining is 1.93 times more volatile than Jacquet Metal Service. It trades about 0.09 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.01 per unit of risk. If you would invest 6,765 in Hochschild Mining plc on August 24, 2024 and sell it today you would earn a total of 15,835 from holding Hochschild Mining plc or generate 234.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochschild Mining plc vs. Jacquet Metal Service
Performance |
| Timeline |
| Hochschild Mining plc |
| Jacquet Metal Service |
Hochschild Mining and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Jacquet Metal
The main advantage of trading using opposite Hochschild Mining and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| Hochschild Mining vs. Young Cos Brewery | Hochschild Mining vs. Monster Beverage Corp | Hochschild Mining vs. Adriatic Metals | Hochschild Mining vs. Capital Metals PLC |
| Jacquet Metal vs. Hochschild Mining plc | Jacquet Metal vs. Aeorema Communications Plc | Jacquet Metal vs. Zoom Video Communications | Jacquet Metal vs. MTI Wireless Edge |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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