Correlation Between HOCHSCHILD MINING and BRAGG GAMING

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

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

Diversification Opportunities for HOCHSCHILD MINING and BRAGG GAMING

-0.43

Correlation Coefficient

HOCHSCHILD MINING  BRAGG GAMING

Very good diversification

The 3 months correlation between HOCHSCHILD and BRAGG is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding HOCHSCHILD MINING and BRAGG GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRAGG GAMING GRP 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 BRAGG GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRAGG GAMING GRP has no effect on the direction of HOCHSCHILD MINING i.e., HOCHSCHILD MINING and BRAGG GAMING go up and down completely randomly.

Pair Corralation between HOCHSCHILD MINING and BRAGG GAMING

Assuming the 90 days trading horizon HOCHSCHILD MINING is expected to generate 0.77 times more return on investment than BRAGG GAMING. However, HOCHSCHILD MINING is 1.3 times less risky than BRAGG GAMING. It trades about 0.12 of its potential returns per unit of risk. BRAGG GAMING GRP is currently generating about -0.05 per unit of risk. If you would invest  219.00  in HOCHSCHILD MINING on September 15, 2024 and sell it today you would earn a total of  56.00  from holding HOCHSCHILD MINING or generate 25.57% return on investment over 90 days.

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

HOCHSCHILD MINING  vs.  BRAGG GAMING GRP

HOCHSCHILD MINING

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in HOCHSCHILD MINING are ranked lower than 9 (%) 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.

BRAGG GAMING GRP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BRAGG GAMING GRP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with HOCHSCHILD MINING and BRAGG GAMING

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

The idea behind HOCHSCHILD MINING and BRAGG GAMING GRP 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.