Correlation Between Hochschild Mining and Elecnor,

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

Diversification Opportunities for Hochschild Mining and Elecnor,

-0.51

Correlation Coefficient

Hochschild Mining  Elecnor,

Excellent diversification

The 3 months correlation between Hochschild and Elecnor, is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining PLC and Elecnor, SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elecnor, SA 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 Elecnor,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elecnor, SA has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Elecnor, go up and down completely randomly.

Pair Corralation between Hochschild Mining and Elecnor,

Assuming the 90 days horizon Hochschild Mining PLC is expected to under-perform the Elecnor,. But the otc stock apears to be less risky and, when comparing its historical volatility, Hochschild Mining PLC is 2.4 times less risky than Elecnor,. The otc stock trades about -0.02 of its potential returns per unit of risk. The Elecnor, SA is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,164  in Elecnor, SA on October 24, 2024 and sell it today you would earn a total of  386.00  from holding Elecnor, SA or generate 33.16% 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 PLC  vs.  Elecnor, SA

Hochschild Mining PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hochschild Mining PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Hochschild Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Elecnor, SA

Risk-Adjusted Performance

7 of 100

OK

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

Pair Trading with Hochschild Mining and Elecnor,

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

The idea behind Hochschild Mining PLC and Elecnor, SA 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.