Correlation Between Bet At and Hochschild Mining

Can any of the company-specific risk be diversified away by investing in both Bet At 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 Bet At and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between bet at home AG and Hochschild Mining plc, you can compare the effects of market volatilities on Bet At 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 Bet At with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and Hochschild Mining.

Diversification Opportunities for Bet At and Hochschild Mining

-0.54

Correlation Coefficient

Bet At  Hochschild Mining

Excellent diversification

The 3 months correlation between Bet and Hochschild is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG 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 Bet At 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 bet at home AG 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 Bet At i.e., Bet At and Hochschild Mining go up and down completely randomly.

Pair Corralation between Bet At and Hochschild Mining

Assuming the 90 days trading horizon bet at home AG is expected to generate 0.95 times more return on investment than Hochschild Mining. However, bet at home AG is 1.05 times less risky than Hochschild Mining. It trades about 0.08 of its potential returns per unit of risk. Hochschild Mining plc is currently generating about -0.08 per unit of risk. If you would invest  250.00  in bet at home AG on December 1, 2024 and sell it today you would earn a total of  27.00  from holding bet at home AG or generate 10.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

bet at home AG  vs.  Hochschild Mining plc

bet at home

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in bet at home AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bet At may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Hochschild Mining plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hochschild Mining plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Bet At and Hochschild Mining

The main advantage of trading using opposite Bet At and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At 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.

The idea behind bet at home AG and Hochschild Mining plc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.