Correlation Between Hochschild Mining and KEYBANK

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

Diversification Opportunities for Hochschild Mining and KEYBANK

0.37

Correlation Coefficient

Hochschild Mining  KEYBANK

Weak diversification

The 3 months correlation between Hochschild and KEYBANK is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining PLC and KEYBANK NATL ASSN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYBANK NATL ASSN 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 KEYBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEYBANK NATL ASSN has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and KEYBANK go up and down completely randomly.

Pair Corralation between Hochschild Mining and KEYBANK

Assuming the 90 days horizon Hochschild Mining PLC is expected to under-perform the KEYBANK. In addition to that, Hochschild Mining is 25.4 times more volatile than KEYBANK NATL ASSN. It trades about -0.04 of its total potential returns per unit of risk. KEYBANK NATL ASSN is currently generating about -0.06 per unit of volatility. If you would invest  9,788  in KEYBANK NATL ASSN on October 8, 2024 and sell it today you would lose (11.00) from holding KEYBANK NATL ASSN or give up 0.11% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	73.68%
Values	Daily Returns

Hochschild Mining PLC  vs.  KEYBANK NATL ASSN

Hochschild Mining PLC

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hochschild Mining PLC are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Hochschild Mining reported solid returns over the last few months and may actually be approaching a breakup point.

KEYBANK NATL ASSN

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KEYBANK NATL ASSN are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, KEYBANK is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hochschild Mining and KEYBANK

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

The idea behind Hochschild Mining PLC and KEYBANK NATL ASSN 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.