Correlation Between Hochschild Mining and Canadian Utilities
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Canadian Utilities 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 Canadian Utilities 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 Canadian Utilities Limited, you can compare the effects of market volatilities on Hochschild Mining and Canadian Utilities 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 Canadian Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Canadian Utilities.
Diversification Opportunities for Hochschild Mining and Canadian Utilities
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hochschild and Canadian is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Canadian Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Utilities 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 Canadian Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Utilities has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Canadian Utilities go up and down completely randomly.
Pair Corralation between Hochschild Mining and Canadian Utilities
Assuming the 90 days horizon Hochschild Mining plc is expected to generate 4.62 times more return on investment than Canadian Utilities. However, Hochschild Mining is 4.62 times more volatile than Canadian Utilities Limited. It trades about 0.07 of its potential returns per unit of risk. Canadian Utilities Limited is currently generating about 0.17 per unit of risk. If you would invest 403.00 in Hochschild Mining plc on September 6, 2025 and sell it today you would earn a total of 60.00 from holding Hochschild Mining plc or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochschild Mining plc vs. Canadian Utilities Limited
Performance |
| Timeline |
| Hochschild Mining plc |
| Canadian Utilities |
Hochschild Mining and Canadian Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Canadian Utilities
The main advantage of trading using opposite Hochschild Mining and Canadian Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Canadian Utilities 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 Canadian Utilities will offset losses from the drop in Canadian Utilities' long position.| Hochschild Mining vs. VIENNA INSURANCE GR | Hochschild Mining vs. HOCHSCHILD MINING | Hochschild Mining vs. FUTURE GAMING GRP | Hochschild Mining vs. REVO INSURANCE SPA |
| Canadian Utilities vs. MAGIC SOFTWARE ENTR | Canadian Utilities vs. Easy Software AG | Canadian Utilities vs. Unity Software | Canadian Utilities vs. Progress Software |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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