Correlation Between Hochschild Mining and Magnis Resources

Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Magnis Resources 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 Magnis Resources 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 Magnis Resources Limited, you can compare the effects of market volatilities on Hochschild Mining and Magnis Resources 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 Magnis Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Magnis Resources.

Diversification Opportunities for Hochschild Mining and Magnis Resources

0.0

Correlation Coefficient

Hochschild Mining  Magnis Resources

Pay attention - limited upside

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

Pair Corralation between Hochschild Mining and Magnis Resources

If you would invest  4.20  in Magnis Resources Limited on October 10, 2024 and sell it today you would earn a total of  0.00  from holding Magnis Resources Limited or generate 0.0% return on investment over 90 days.

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

Hochschild Mining plc  vs.  Magnis Resources Limited

Hochschild Mining plc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hochschild Mining plc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Hochschild Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Magnis Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Magnis Resources Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Magnis Resources is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Hochschild Mining and Magnis Resources

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

The idea behind Hochschild Mining plc and Magnis Resources Limited 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.

Check out your portfolio center.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.