Correlation Between AfriTin Mining and Hochschild Mining
Can any of the company-specific risk be diversified away by investing in both AfriTin Mining 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 AfriTin Mining and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AfriTin Mining and Hochschild Mining plc, you can compare the effects of market volatilities on AfriTin Mining 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 AfriTin Mining with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfriTin Mining and Hochschild Mining.
Diversification Opportunities for AfriTin Mining and Hochschild Mining
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AfriTin and Hochschild is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining 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 AfriTin Mining 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 AfriTin Mining 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 AfriTin Mining i.e., AfriTin Mining and Hochschild Mining go up and down completely randomly.
Pair Corralation between AfriTin Mining and Hochschild Mining
Assuming the 90 days trading horizon AfriTin Mining is expected to under-perform the Hochschild Mining. In addition to that, AfriTin Mining is 1.2 times more volatile than Hochschild Mining plc. It trades about -0.16 of its total potential returns per unit of risk. Hochschild Mining plc is currently generating about 0.09 per unit of volatility. If you would invest 18,240 in Hochschild Mining plc on September 24, 2024 and sell it today you would earn a total of 3,060 from holding Hochschild Mining plc or generate 16.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AfriTin Mining vs. Hochschild Mining plc
Performance |
Timeline |
AfriTin Mining |
Hochschild Mining plc |
AfriTin Mining and Hochschild Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AfriTin Mining and Hochschild Mining
The main advantage of trading using opposite AfriTin Mining and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining 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.AfriTin Mining vs. Givaudan SA | AfriTin Mining vs. Antofagasta PLC | AfriTin Mining vs. Ferrexpo PLC | AfriTin Mining vs. Atalaya Mining |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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