Correlation Between Hochschild Mining and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Coeur Mining 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 Coeur Mining 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 Coeur Mining, you can compare the effects of market volatilities on Hochschild Mining and Coeur Mining 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 Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Coeur Mining.
Diversification Opportunities for Hochschild Mining and Coeur Mining
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hochschild and Coeur is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining 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 Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Coeur Mining go up and down completely randomly.
Pair Corralation between Hochschild Mining and Coeur Mining
Assuming the 90 days trading horizon Hochschild Mining plc is expected to generate 0.76 times more return on investment than Coeur Mining. However, Hochschild Mining plc is 1.31 times less risky than Coeur Mining. It trades about 0.09 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.06 per unit of risk. If you would invest 6,470 in Hochschild Mining plc on September 2, 2024 and sell it today you would earn a total of 14,930 from holding Hochschild Mining plc or generate 230.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Hochschild Mining plc vs. Coeur Mining
Performance |
| Timeline |
| Hochschild Mining plc |
| Coeur Mining |
Hochschild Mining and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Coeur Mining
The main advantage of trading using opposite Hochschild Mining and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Coeur Mining 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 Coeur Mining will offset losses from the drop in Coeur Mining's long position.| Hochschild Mining vs. Givaudan SA | Hochschild Mining vs. Antofagasta PLC | Hochschild Mining vs. Centamin PLC | Hochschild Mining vs. Atalaya Mining |
| Coeur Mining vs. Uniper SE | Coeur Mining vs. Mulberry Group PLC | Coeur Mining vs. London Security Plc | Coeur Mining vs. Triad Group 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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