Correlation Between Hochschild Mining and Jardine Matheson
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Jardine Matheson 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 Jardine Matheson 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 Jardine Matheson Holdings, you can compare the effects of market volatilities on Hochschild Mining and Jardine Matheson 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 Jardine Matheson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Jardine Matheson.
Diversification Opportunities for Hochschild Mining and Jardine Matheson
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hochschild and Jardine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Jardine Matheson Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jardine Matheson Holdings 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 Jardine Matheson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jardine Matheson Holdings has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Jardine Matheson go up and down completely randomly.
Pair Corralation between Hochschild Mining and Jardine Matheson
Assuming the 90 days trading horizon Hochschild Mining plc is expected to generate 15.82 times more return on investment than Jardine Matheson. However, Hochschild Mining is 15.82 times more volatile than Jardine Matheson Holdings. It trades about 0.13 of its potential returns per unit of risk. Jardine Matheson Holdings is currently generating about 0.08 per unit of risk. If you would invest 10,180 in Hochschild Mining plc on September 14, 2024 and sell it today you would earn a total of 12,420 from holding Hochschild Mining plc or generate 122.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochschild Mining plc vs. Jardine Matheson Holdings
Performance |
| Timeline |
| Hochschild Mining plc |
| Jardine Matheson Holdings |
Hochschild Mining and Jardine Matheson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Jardine Matheson
The main advantage of trading using opposite Hochschild Mining and Jardine Matheson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Jardine Matheson 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 Jardine Matheson will offset losses from the drop in Jardine Matheson's long position.| Hochschild Mining vs. Sunny Optical Technology | Hochschild Mining vs. Symphony Environmental Technologies | Hochschild Mining vs. Solstad Offshore ASA | Hochschild Mining vs. Ironveld Plc |
| Jardine Matheson vs. Ryanair Holdings plc | Jardine Matheson vs. Ecofin Global Utilities | Jardine Matheson vs. Fair Oaks Income | Jardine Matheson vs. Sealed Air Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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