Correlation Between Hochschild Mining and Anglesey Mining
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Anglesey 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 Anglesey 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 Anglesey Mining, you can compare the effects of market volatilities on Hochschild Mining and Anglesey 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 Anglesey Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Anglesey Mining.
Diversification Opportunities for Hochschild Mining and Anglesey Mining
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hochschild and Anglesey is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Anglesey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey 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 Anglesey Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglesey Mining has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Anglesey Mining go up and down completely randomly.
Pair Corralation between Hochschild Mining and Anglesey Mining
Assuming the 90 days trading horizon Hochschild Mining plc is expected to generate 1.13 times more return on investment than Anglesey Mining. However, Hochschild Mining is 1.13 times more volatile than Anglesey Mining. It trades about -0.1 of its potential returns per unit of risk. Anglesey Mining is currently generating about -0.26 per unit of risk. If you would invest 22,950 in Hochschild Mining plc on September 1, 2024 and sell it today you would lose (1,550) from holding Hochschild Mining plc or give up 6.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochschild Mining plc vs. Anglesey Mining
Performance |
| Timeline |
| Hochschild Mining plc |
| Anglesey Mining |
Hochschild Mining and Anglesey Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Anglesey Mining
The main advantage of trading using opposite Hochschild Mining and Anglesey Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Anglesey 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 Anglesey Mining will offset losses from the drop in Anglesey Mining's long position.| Hochschild Mining vs. Givaudan SA | Hochschild Mining vs. Antofagasta PLC | Hochschild Mining vs. Centamin PLC | Hochschild Mining vs. Atalaya Mining |
| Anglesey Mining vs. Wizz Air Holdings | Anglesey Mining vs. Zurich Insurance Group | Anglesey Mining vs. Vitec Software Group | Anglesey Mining vs. Cizzle Biotechnology Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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