Correlation Between HOCHSCHILD MINING and Macerich

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

By analyzing existing cross correlation between HOCHSCHILD MINING and The Macerich, you can compare the effects of market volatilities on HOCHSCHILD MINING and Macerich 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 HOCHSCHILD MINING with a short position of Macerich. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOCHSCHILD MINING and Macerich.

Diversification Opportunities for HOCHSCHILD MINING and Macerich

-0.13

Correlation Coefficient

HOCHSCHILD MINING  Macerich

Good diversification

The 3 months correlation between HOCHSCHILD and Macerich is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding HOCHSCHILD MINING and The Macerich in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macerich and HOCHSCHILD 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 HOCHSCHILD MINING are associated (or correlated) with Macerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macerich has no effect on the direction of HOCHSCHILD MINING i.e., HOCHSCHILD MINING and Macerich go up and down completely randomly.

Pair Corralation between HOCHSCHILD MINING and Macerich

Assuming the 90 days trading horizon HOCHSCHILD MINING is expected to generate 1.62 times more return on investment than Macerich. However, HOCHSCHILD MINING is 1.62 times more volatile than The Macerich. It trades about 0.13 of its potential returns per unit of risk. The Macerich is currently generating about 0.17 per unit of risk. If you would invest  217.00  in HOCHSCHILD MINING on October 9, 2024 and sell it today you would earn a total of  58.00  from holding HOCHSCHILD MINING or generate 26.73% return on investment over 90 days.

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

HOCHSCHILD MINING  vs.  The Macerich

HOCHSCHILD MINING

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in HOCHSCHILD MINING are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain primary indicators, HOCHSCHILD MINING exhibited solid returns over the last few months and may actually be approaching a breakup point.

Macerich

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Macerich are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Macerich reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HOCHSCHILD MINING and Macerich

The main advantage of trading using opposite HOCHSCHILD MINING and Macerich positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOCHSCHILD MINING position performs unexpectedly, Macerich 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 Macerich will offset losses from the drop in Macerich's long position.

The idea behind HOCHSCHILD MINING and The Macerich 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.