Correlation Between Minera Frisco and BHP
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By analyzing existing cross correlation between Minera Frisco SAB and BHP Group, you can compare the effects of market volatilities on Minera Frisco and BHP 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 Minera Frisco with a short position of BHP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minera Frisco and BHP.
Diversification Opportunities for Minera Frisco and BHP
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Minera and BHP is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Minera Frisco SAB and BHP Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHP Group and Minera Frisco 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 Minera Frisco SAB are associated (or correlated) with BHP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHP Group has no effect on the direction of Minera Frisco i.e., Minera Frisco and BHP go up and down completely randomly.
Pair Corralation between Minera Frisco and BHP
Assuming the 90 days trading horizon Minera Frisco is expected to generate 3.1 times less return on investment than BHP. In addition to that, Minera Frisco is 1.49 times more volatile than BHP Group. It trades about 0.02 of its total potential returns per unit of risk. BHP Group is currently generating about 0.1 per unit of volatility. If you would invest 93,755 in BHP Group on September 1, 2024 and sell it today you would earn a total of 20,165 from holding BHP Group or generate 21.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Minera Frisco SAB vs. BHP Group
Performance |
| Timeline |
| Minera Frisco SAB |
| BHP Group |
Minera Frisco and BHP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minera Frisco and BHP
The main advantage of trading using opposite Minera Frisco and BHP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minera Frisco position performs unexpectedly, BHP 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 BHP will offset losses from the drop in BHP's long position.| Minera Frisco vs. Southwest Airlines | Minera Frisco vs. Lloyds Banking Group | Minera Frisco vs. Applied Materials | Minera Frisco vs. Ameriprise Financial |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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