Correlation Between Hochschild Mining and Adriatic Metals
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Adriatic Metals 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 Adriatic Metals 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 Adriatic Metals, you can compare the effects of market volatilities on Hochschild Mining and Adriatic Metals 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 Adriatic Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Adriatic Metals.
Diversification Opportunities for Hochschild Mining and Adriatic Metals
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hochschild and Adriatic is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Adriatic Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adriatic Metals 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 Adriatic Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adriatic Metals has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Adriatic Metals go up and down completely randomly.
Pair Corralation between Hochschild Mining and Adriatic Metals
Assuming the 90 days trading horizon Hochschild Mining plc is expected to under-perform the Adriatic Metals. But the stock apears to be less risky and, when comparing its historical volatility, Hochschild Mining plc is 1.04 times less risky than Adriatic Metals. The stock trades about -0.09 of its potential returns per unit of risk. The Adriatic Metals is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 21,750 in Adriatic Metals on August 27, 2024 and sell it today you would lose (1,000.00) from holding Adriatic Metals or give up 4.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochschild Mining plc vs. Adriatic Metals
Performance |
| Timeline |
| Hochschild Mining plc |
| Adriatic Metals |
Hochschild Mining and Adriatic Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Adriatic Metals
The main advantage of trading using opposite Hochschild Mining and Adriatic Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Adriatic Metals 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 Adriatic Metals will offset losses from the drop in Adriatic Metals' long position.| Hochschild Mining vs. Wheaton Precious Metals | Hochschild Mining vs. Coeur Mining | Hochschild Mining vs. Capital Drilling | Hochschild Mining vs. Thor Mining PLC |
| Adriatic Metals vs. Givaudan SA | Adriatic Metals vs. Antofagasta PLC | Adriatic Metals vs. Centamin PLC | Adriatic Metals vs. Atalaya Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |