Correlation Between Hochschild Mining and BANK RAKYAT

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

By analyzing existing cross correlation between Hochschild Mining plc and BANK RAKYAT IND, you can compare the effects of market volatilities on Hochschild Mining and BANK RAKYAT 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 BANK RAKYAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and BANK RAKYAT.

Diversification Opportunities for Hochschild Mining and BANK RAKYAT

0.0

Correlation Coefficient

Hochschild Mining  BANK RAKYAT

Pay attention - limited upside

The 3 months correlation between Hochschild and BANK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and BANK RAKYAT IND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK RAKYAT IND 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 plc are associated (or correlated) with BANK RAKYAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK RAKYAT IND has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and BANK RAKYAT go up and down completely randomly.

Pair Corralation between Hochschild Mining and BANK RAKYAT

If you would invest  223.00  in Hochschild Mining plc on October 4, 2024 and sell it today you would earn a total of  38.00  from holding Hochschild Mining plc or generate 17.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Hochschild Mining plc  vs.  BANK RAKYAT IND

Hochschild Mining plc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hochschild Mining plc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Hochschild Mining reported solid returns over the last few months and may actually be approaching a breakup point.

BANK RAKYAT IND

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BANK RAKYAT IND has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Hochschild Mining and BANK RAKYAT

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

The idea behind Hochschild Mining plc and BANK RAKYAT IND 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.