Correlation Between Mitie Group and HOCHSCHILD MINING
Can any of the company-specific risk be diversified away by investing in both Mitie Group and HOCHSCHILD MINING 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 Mitie Group and HOCHSCHILD MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitie Group PLC and HOCHSCHILD MINING, you can compare the effects of market volatilities on Mitie Group and HOCHSCHILD MINING 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 Mitie Group with a short position of HOCHSCHILD MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitie Group and HOCHSCHILD MINING.
Diversification Opportunities for Mitie Group and HOCHSCHILD MINING
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitie and HOCHSCHILD is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mitie Group PLC and HOCHSCHILD MINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOCHSCHILD MINING and Mitie Group 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 Mitie Group PLC are associated (or correlated) with HOCHSCHILD MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOCHSCHILD MINING has no effect on the direction of Mitie Group i.e., Mitie Group and HOCHSCHILD MINING go up and down completely randomly.
Pair Corralation between Mitie Group and HOCHSCHILD MINING
Assuming the 90 days horizon Mitie Group PLC is expected to under-perform the HOCHSCHILD MINING. But the stock apears to be less risky and, when comparing its historical volatility, Mitie Group PLC is 1.7 times less risky than HOCHSCHILD MINING. The stock trades about -0.01 of its potential returns per unit of risk. The HOCHSCHILD MINING is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 88.00 in HOCHSCHILD MINING on August 24, 2024 and sell it today you would earn a total of 188.00 from holding HOCHSCHILD MINING or generate 213.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mitie Group PLC vs. HOCHSCHILD MINING
Performance |
| Timeline |
| Mitie Group PLC |
| HOCHSCHILD MINING |
Mitie Group and HOCHSCHILD MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitie Group and HOCHSCHILD MINING
The main advantage of trading using opposite Mitie Group and HOCHSCHILD MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitie Group position performs unexpectedly, HOCHSCHILD MINING 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 HOCHSCHILD MINING will offset losses from the drop in HOCHSCHILD MINING's long position.| Mitie Group vs. Thermo Fisher Scientific | Mitie Group vs. Siemens Healthineers AG | Mitie Group vs. DexCom Inc | Mitie Group vs. Superior Plus Corp |
| HOCHSCHILD MINING vs. LEGACY IRON ORE | HOCHSCHILD MINING vs. Ultra Clean Holdings | HOCHSCHILD MINING vs. Insteel Industries | HOCHSCHILD MINING vs. Tianjin Capital Environmental |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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