Correlation Between Hochschild Mining and Oxford Metrics
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Oxford Metrics 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 Oxford Metrics 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 Oxford Metrics plc, you can compare the effects of market volatilities on Hochschild Mining and Oxford Metrics 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 Oxford Metrics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Oxford Metrics.
Diversification Opportunities for Hochschild Mining and Oxford Metrics
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hochschild and Oxford is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Oxford Metrics plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Metrics plc 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 Oxford Metrics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Metrics plc has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Oxford Metrics go up and down completely randomly.
Pair Corralation between Hochschild Mining and Oxford Metrics
Assuming the 90 days trading horizon Hochschild Mining plc is expected to under-perform the Oxford Metrics. In addition to that, Hochschild Mining is 1.1 times more volatile than Oxford Metrics plc. It trades about -0.12 of its total potential returns per unit of risk. Oxford Metrics plc is currently generating about 0.03 per unit of volatility. If you would invest 5,940 in Oxford Metrics plc on September 4, 2024 and sell it today you would earn a total of 60.00 from holding Oxford Metrics plc or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochschild Mining plc vs. Oxford Metrics plc
Performance |
| Timeline |
| Hochschild Mining plc |
| Oxford Metrics plc |
Hochschild Mining and Oxford Metrics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Oxford Metrics
The main advantage of trading using opposite Hochschild Mining and Oxford Metrics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Oxford Metrics 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 Oxford Metrics will offset losses from the drop in Oxford Metrics' long position.| Hochschild Mining vs. Givaudan SA | Hochschild Mining vs. Antofagasta PLC | Hochschild Mining vs. Atalaya Mining | Hochschild Mining vs. Ferrexpo PLC |
| Oxford Metrics vs. CVR Energy | Oxford Metrics vs. Viridian Therapeutics | Oxford Metrics vs. Nationwide Building Society | Oxford Metrics vs. Dollar Tree |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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