Correlation Between KGHM Polska and Hudbay Minerals
Can any of the company-specific risk be diversified away by investing in both KGHM Polska and Hudbay Minerals 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 KGHM Polska and Hudbay Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KGHM Polska Miedz and Hudbay Minerals, you can compare the effects of market volatilities on KGHM Polska and Hudbay Minerals 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 KGHM Polska with a short position of Hudbay Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGHM Polska and Hudbay Minerals.
Diversification Opportunities for KGHM Polska and Hudbay Minerals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KGHM and Hudbay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KGHM Polska Miedz and Hudbay Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudbay Minerals and KGHM Polska 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 KGHM Polska Miedz are associated (or correlated) with Hudbay Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudbay Minerals has no effect on the direction of KGHM Polska i.e., KGHM Polska and Hudbay Minerals go up and down completely randomly.
Pair Corralation between KGHM Polska and Hudbay Minerals
If you would invest 496.00 in Hudbay Minerals on November 27, 2024 and sell it today you would earn a total of 214.00 from holding Hudbay Minerals or generate 43.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KGHM Polska Miedz vs. Hudbay Minerals
Performance |
| Timeline |
| KGHM Polska Miedz |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Hudbay Minerals |
KGHM Polska and Hudbay Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGHM Polska and Hudbay Minerals
The main advantage of trading using opposite KGHM Polska and Hudbay Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGHM Polska position performs unexpectedly, Hudbay Minerals 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 Hudbay Minerals will offset losses from the drop in Hudbay Minerals' long position.| KGHM Polska vs. Bell Copper | KGHM Polska vs. Arizona Sonoran Copper | KGHM Polska vs. CopperCorp Resources | KGHM Polska vs. Copper Fox Metals |
| Hudbay Minerals vs. Teck Resources Ltd | Hudbay Minerals vs. Fortuna Silver Mines | Hudbay Minerals vs. Osisko Gold Ro | Hudbay Minerals vs. Nexa Resources SA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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