Correlation Between Hochschild Mining and AUSTEVOLL SEAFOOD

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

Diversification Opportunities for Hochschild Mining and AUSTEVOLL SEAFOOD

0.0

Correlation Coefficient

Hochschild Mining  AUSTEVOLL SEAFOOD

Pay attention - limited upside

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

Pair Corralation between Hochschild Mining and AUSTEVOLL SEAFOOD

Assuming the 90 days horizon Hochschild Mining plc is expected to under-perform the AUSTEVOLL SEAFOOD. In addition to that, Hochschild Mining is 2.03 times more volatile than AUSTEVOLL SEAFOOD. It trades about -0.01 of its total potential returns per unit of risk. AUSTEVOLL SEAFOOD is currently generating about 0.08 per unit of volatility. If you would invest  805.00  in AUSTEVOLL SEAFOOD on October 7, 2024 and sell it today you would earn a total of  35.00  from holding AUSTEVOLL SEAFOOD or generate 4.35% 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.  AUSTEVOLL SEAFOOD

Hochschild Mining plc

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hochschild Mining plc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Hochschild Mining reported solid returns over the last few months and may actually be approaching a breakup point.

AUSTEVOLL SEAFOOD

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AUSTEVOLL SEAFOOD are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD

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

The idea behind Hochschild Mining plc and AUSTEVOLL SEAFOOD 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.