Correlation Between Hochschild Mining and METALL ZUG
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and METALL ZUG 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 METALL ZUG 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 METALL ZUG AG, you can compare the effects of market volatilities on Hochschild Mining and METALL ZUG 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 METALL ZUG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and METALL ZUG.
Diversification Opportunities for Hochschild Mining and METALL ZUG
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hochschild and METALL is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and METALL ZUG AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on METALL ZUG 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 METALL ZUG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of METALL ZUG AG has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and METALL ZUG go up and down completely randomly.
Pair Corralation between Hochschild Mining and METALL ZUG
Assuming the 90 days trading horizon Hochschild Mining plc is expected to generate 3.28 times more return on investment than METALL ZUG. However, Hochschild Mining is 3.28 times more volatile than METALL ZUG AG. It trades about 0.1 of its potential returns per unit of risk. METALL ZUG AG is currently generating about -0.12 per unit of risk. If you would invest 17,460 in Hochschild Mining plc on September 13, 2024 and sell it today you would earn a total of 6,440 from holding Hochschild Mining plc or generate 36.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Hochschild Mining plc vs. METALL ZUG AG
Performance |
| Timeline |
| Hochschild Mining plc |
| METALL ZUG AG |
Hochschild Mining and METALL ZUG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and METALL ZUG
The main advantage of trading using opposite Hochschild Mining and METALL ZUG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, METALL ZUG 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 METALL ZUG will offset losses from the drop in METALL ZUG's long position.| Hochschild Mining vs. Givaudan SA | Hochschild Mining vs. Antofagasta PLC | Hochschild Mining vs. Ferrexpo PLC | Hochschild Mining vs. Atalaya Mining |
| METALL ZUG vs. Symphony Environmental Technologies | METALL ZUG vs. Alaska Air Group | METALL ZUG vs. Bloomsbury Publishing Plc | METALL ZUG vs. Porvair 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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