Correlation Between Hochschild Mining and Centaur Media
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Centaur Media 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 Centaur Media 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 Centaur Media, you can compare the effects of market volatilities on Hochschild Mining and Centaur Media 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 Centaur Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Centaur Media.
Diversification Opportunities for Hochschild Mining and Centaur Media
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hochschild and Centaur is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Centaur Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Media 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 Centaur Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Media has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Centaur Media go up and down completely randomly.
Pair Corralation between Hochschild Mining and Centaur Media
Assuming the 90 days trading horizon Hochschild Mining plc is expected to generate 1.11 times more return on investment than Centaur Media. However, Hochschild Mining is 1.11 times more volatile than Centaur Media. It trades about 0.12 of its potential returns per unit of risk. Centaur Media is currently generating about -0.15 per unit of risk. If you would invest 17,180 in Hochschild Mining plc on September 2, 2024 and sell it today you would earn a total of 4,220 from holding Hochschild Mining plc or generate 24.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochschild Mining plc vs. Centaur Media
Performance |
| Timeline |
| Hochschild Mining plc |
| Centaur Media |
Hochschild Mining and Centaur Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Centaur Media
The main advantage of trading using opposite Hochschild Mining and Centaur Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Centaur Media 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 Centaur Media will offset losses from the drop in Centaur Media's long position.| Hochschild Mining vs. Givaudan SA | Hochschild Mining vs. Antofagasta PLC | Hochschild Mining vs. Centamin PLC | Hochschild Mining vs. Atalaya Mining |
| Centaur Media vs. FC Investment Trust | Centaur Media vs. MoneysupermarketCom Group PLC | Centaur Media vs. Molson Coors Beverage | Centaur Media vs. CAP LEASE AVIATION |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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