Correlation Between HOCHSCHILD MINING and ManpowerGroup

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

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

Diversification Opportunities for HOCHSCHILD MINING and ManpowerGroup

-0.16

Correlation Coefficient

HOCHSCHILD MINING  ManpowerGroup

Good diversification

The 3 months correlation between HOCHSCHILD and ManpowerGroup is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding HOCHSCHILD MINING and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup 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 ManpowerGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ManpowerGroup has no effect on the direction of HOCHSCHILD MINING i.e., HOCHSCHILD MINING and ManpowerGroup go up and down completely randomly.

Pair Corralation between HOCHSCHILD MINING and ManpowerGroup

Assuming the 90 days trading horizon HOCHSCHILD MINING is expected to under-perform the ManpowerGroup. In addition to that, HOCHSCHILD MINING is 2.08 times more volatile than ManpowerGroup. It trades about -0.04 of its total potential returns per unit of risk. ManpowerGroup is currently generating about 0.03 per unit of volatility. If you would invest  5,605  in ManpowerGroup on October 24, 2024 and sell it today you would earn a total of  95.00  from holding ManpowerGroup or generate 1.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

HOCHSCHILD MINING  vs.  ManpowerGroup

HOCHSCHILD MINING

Risk-Adjusted Performance

0 of 100

Very Weak

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

ManpowerGroup

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ManpowerGroup are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ManpowerGroup is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with HOCHSCHILD MINING and ManpowerGroup

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

The idea behind HOCHSCHILD MINING and ManpowerGroup 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 Stocks Directory module to find actively traded stocks across global markets.