Correlation Between Xinhua Winshare and Hochschild Mining
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare 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 Xinhua Winshare and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinhua Winshare Publishing and Hochschild Mining plc, you can compare the effects of market volatilities on Xinhua Winshare 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 Xinhua Winshare with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Hochschild Mining.
Diversification Opportunities for Xinhua Winshare and Hochschild Mining
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xinhua and Hochschild is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing 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 Xinhua Winshare 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 Xinhua Winshare Publishing 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 Xinhua Winshare i.e., Xinhua Winshare and Hochschild Mining go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Hochschild Mining
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 0.73 times more return on investment than Hochschild Mining. However, Xinhua Winshare Publishing is 1.37 times less risky than Hochschild Mining. It trades about 0.11 of its potential returns per unit of risk. Hochschild Mining plc is currently generating about 0.06 per unit of risk. If you would invest 94.00 in Xinhua Winshare Publishing on October 18, 2024 and sell it today you would earn a total of 35.00 from holding Xinhua Winshare Publishing or generate 37.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Hochschild Mining plc
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Hochschild Mining plc |
Xinhua Winshare and Hochschild Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Hochschild Mining
The main advantage of trading using opposite Xinhua Winshare and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare 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.| Xinhua Winshare vs. GMO Internet | Xinhua Winshare vs. Spirent Communications plc | Xinhua Winshare vs. Broadcom | Xinhua Winshare vs. CRISPR Therapeutics AG |
| Hochschild Mining vs. PLAYMATES TOYS | Hochschild Mining vs. Gaming and Leisure | Hochschild Mining vs. Xinhua Winshare Publishing | Hochschild Mining vs. Playtech plc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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