Correlation Between Hochschild Mining and ZEEKR Intelligent

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

Diversification Opportunities for Hochschild Mining and ZEEKR Intelligent

0.57

Correlation Coefficient

Hochschild Mining  ZEEKR Intelligent

Very weak diversification

The 3 months correlation between Hochschild and ZEEKR is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining PLC and ZEEKR Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEEKR Intelligent 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 ZEEKR Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZEEKR Intelligent has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and ZEEKR Intelligent go up and down completely randomly.

Pair Corralation between Hochschild Mining and ZEEKR Intelligent

Assuming the 90 days horizon Hochschild Mining PLC is expected to generate 0.79 times more return on investment than ZEEKR Intelligent. However, Hochschild Mining PLC is 1.26 times less risky than ZEEKR Intelligent. It trades about 0.12 of its potential returns per unit of risk. ZEEKR Intelligent Technology is currently generating about -0.03 per unit of risk. If you would invest  266.00  in Hochschild Mining PLC on December 21, 2024 and sell it today you would earn a total of  71.00  from holding Hochschild Mining PLC or generate 26.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Hochschild Mining PLC  vs.  ZEEKR Intelligent Technology

Hochschild Mining PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hochschild Mining PLC are ranked lower than 9 (%) 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.

ZEEKR Intelligent

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZEEKR Intelligent Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Hochschild Mining and ZEEKR Intelligent

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

The idea behind Hochschild Mining PLC and ZEEKR Intelligent Technology 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.