Correlation Between Hochschild Mining and Critical Metals
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Critical Metals 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 Critical Metals 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 Critical Metals Plc, you can compare the effects of market volatilities on Hochschild Mining and Critical Metals 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 Critical Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Critical Metals.
Diversification Opportunities for Hochschild Mining and Critical Metals
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hochschild and Critical is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Critical Metals Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Critical Metals Plc 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 Critical Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Critical Metals Plc has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Critical Metals go up and down completely randomly.
Pair Corralation between Hochschild Mining and Critical Metals
Assuming the 90 days trading horizon Hochschild Mining is expected to generate 2.69 times less return on investment than Critical Metals. But when comparing it to its historical volatility, Hochschild Mining plc is 1.07 times less risky than Critical Metals. It trades about 0.13 of its potential returns per unit of risk. Critical Metals Plc is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 475.00 in Critical Metals Plc on September 2, 2025 and sell it today you would earn a total of 525.00 from holding Critical Metals Plc or generate 110.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 92.31% |
| Values | Daily Returns |
Hochschild Mining plc vs. Critical Metals Plc
Performance |
| Timeline |
| Hochschild Mining plc |
| Critical Metals Plc |
Hochschild Mining and Critical Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Critical Metals
The main advantage of trading using opposite Hochschild Mining and Critical Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Critical Metals 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 Critical Metals will offset losses from the drop in Critical Metals' long position.| Hochschild Mining vs. Central Asia Metals | Hochschild Mining vs. Blackrock World Mining | Hochschild Mining vs. GreenX Metals | Hochschild Mining vs. Cairo Communication SpA |
| Critical Metals vs. Coor Service Management | Critical Metals vs. Molson Coors Beverage | Critical Metals vs. MoneysupermarketCom Group PLC | Critical Metals vs. Ebro Foods |
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.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |