Correlation Between Hochschild Mining and Ocean Harvest
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Ocean Harvest 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 Ocean Harvest 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 Ocean Harvest Technology, you can compare the effects of market volatilities on Hochschild Mining and Ocean Harvest 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 Ocean Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Ocean Harvest.
Diversification Opportunities for Hochschild Mining and Ocean Harvest
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hochschild and Ocean is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Ocean Harvest Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Harvest Technology 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 Ocean Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Harvest Technology has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Ocean Harvest go up and down completely randomly.
Pair Corralation between Hochschild Mining and Ocean Harvest
Assuming the 90 days trading horizon Hochschild Mining plc is expected to generate 0.9 times more return on investment than Ocean Harvest. However, Hochschild Mining plc is 1.11 times less risky than Ocean Harvest. It trades about 0.12 of its potential returns per unit of risk. Ocean Harvest Technology is currently generating about 0.01 per unit of risk. If you would invest 9,900 in Hochschild Mining plc on September 2, 2024 and sell it today you would earn a total of 11,500 from holding Hochschild Mining plc or generate 116.16% 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. Ocean Harvest Technology
Performance |
| Timeline |
| Hochschild Mining plc |
| Ocean Harvest Technology |
Hochschild Mining and Ocean Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Ocean Harvest
The main advantage of trading using opposite Hochschild Mining and Ocean Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Ocean Harvest 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 Ocean Harvest will offset losses from the drop in Ocean Harvest's long position.| Hochschild Mining vs. Givaudan SA | Hochschild Mining vs. Antofagasta PLC | Hochschild Mining vs. Centamin PLC | Hochschild Mining vs. Atalaya Mining |
| Ocean Harvest vs. GoldMining | Ocean Harvest vs. Invesco Physical Silver | Ocean Harvest vs. Westlake Chemical Corp | Ocean Harvest vs. Games Workshop Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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