Correlation Between Symphony Environmental and Hochschild Mining
Can any of the company-specific risk be diversified away by investing in both Symphony Environmental 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 Symphony Environmental and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Symphony Environmental Technologies and Hochschild Mining plc, you can compare the effects of market volatilities on Symphony Environmental 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 Symphony Environmental with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Environmental and Hochschild Mining.
Diversification Opportunities for Symphony Environmental and Hochschild Mining
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Symphony and Hochschild is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Environmental Technol 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 Symphony Environmental 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 Symphony Environmental Technologies 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 Symphony Environmental i.e., Symphony Environmental and Hochschild Mining go up and down completely randomly.
Pair Corralation between Symphony Environmental and Hochschild Mining
Assuming the 90 days trading horizon Symphony Environmental is expected to generate 9.04 times less return on investment than Hochschild Mining. In addition to that, Symphony Environmental is 1.18 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 0.11 per unit of volatility. If you would invest 18,700 in Hochschild Mining plc on September 14, 2024 and sell it today you would earn a total of 3,900 from holding Hochschild Mining plc or generate 20.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Symphony Environmental Technol vs. Hochschild Mining plc
Performance |
Timeline |
Symphony Environmental |
Hochschild Mining plc |
Symphony Environmental and Hochschild Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Symphony Environmental and Hochschild Mining
The main advantage of trading using opposite Symphony Environmental and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Environmental 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.Symphony Environmental vs. CVS Health Corp | Symphony Environmental vs. PureTech Health plc | Symphony Environmental vs. Planet Fitness Cl | Symphony Environmental vs. Lords Grp Trading |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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