Correlation Between Ocean Harvest and Hochschild Mining
Can any of the company-specific risk be diversified away by investing in both Ocean Harvest 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 Ocean Harvest and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Harvest Technology and Hochschild Mining plc, you can compare the effects of market volatilities on Ocean Harvest 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 Ocean Harvest with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Harvest and Hochschild Mining.
Diversification Opportunities for Ocean Harvest and Hochschild Mining
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ocean and Hochschild is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Harvest Technology and Hochschild Mining plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hochschild Mining plc and Ocean Harvest 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 Ocean Harvest Technology 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 plc has no effect on the direction of Ocean Harvest i.e., Ocean Harvest and Hochschild Mining go up and down completely randomly.
Pair Corralation between Ocean Harvest and Hochschild Mining
Assuming the 90 days trading horizon Ocean Harvest is expected to generate 16.79 times less return on investment than Hochschild Mining. In addition to that, Ocean Harvest is 1.11 times more volatile than Hochschild Mining plc. It trades about 0.01 of its total potential returns per unit of risk. Hochschild Mining plc is currently generating about 0.12 per unit of volatility. 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 |
Ocean Harvest Technology vs. Hochschild Mining plc
Performance |
| Timeline |
| Ocean Harvest Technology |
| Hochschild Mining plc |
Ocean Harvest and Hochschild Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Harvest and Hochschild Mining
The main advantage of trading using opposite Ocean Harvest and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Harvest 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.| Ocean Harvest vs. GoldMining | Ocean Harvest vs. Invesco Physical Silver | Ocean Harvest vs. Westlake Chemical Corp | Ocean Harvest vs. Games Workshop Group |
| Hochschild Mining vs. Givaudan SA | Hochschild Mining vs. Antofagasta PLC | Hochschild Mining vs. Centamin PLC | Hochschild Mining vs. Atalaya Mining |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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