Correlation Between Hochschild Mining and Sealed Air
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Sealed Air 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 Sealed Air 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 Sealed Air Corp, you can compare the effects of market volatilities on Hochschild Mining and Sealed Air 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 Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Sealed Air.
Diversification Opportunities for Hochschild Mining and Sealed Air
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hochschild and Sealed is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Sealed Air Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air 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 Sealed Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sealed Air Corp has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Sealed Air go up and down completely randomly.
Pair Corralation between Hochschild Mining and Sealed Air
Assuming the 90 days trading horizon Hochschild Mining plc is expected to generate 1.67 times more return on investment than Sealed Air. However, Hochschild Mining is 1.67 times more volatile than Sealed Air Corp. It trades about 0.02 of its potential returns per unit of risk. Sealed Air Corp is currently generating about -0.25 per unit of risk. If you would invest 21,250 in Hochschild Mining plc on September 25, 2024 and sell it today you would earn a total of 50.00 from holding Hochschild Mining plc or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hochschild Mining plc vs. Sealed Air Corp
Performance |
| Timeline |
| Hochschild Mining plc |
| Sealed Air Corp |
Hochschild Mining and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Sealed Air
The main advantage of trading using opposite Hochschild Mining and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Sealed Air 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 Sealed Air will offset losses from the drop in Sealed Air's long position.| Hochschild Mining vs. Givaudan SA | Hochschild Mining vs. Antofagasta PLC | Hochschild Mining vs. Ferrexpo PLC | Hochschild Mining vs. Atalaya Mining |
| Sealed Air vs. Silver Bullet Data | Sealed Air vs. United Utilities Group | Sealed Air vs. Ecofin Global Utilities | Sealed Air 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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