Correlation Between SMA Solar and Hochschild Mining
Can any of the company-specific risk be diversified away by investing in both SMA Solar and Hochschild Mining 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 SMA Solar and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMA Solar Technology and Hochschild Mining plc, you can compare the effects of market volatilities on SMA Solar and Hochschild Mining 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 SMA Solar with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMA Solar and Hochschild Mining.
Diversification Opportunities for SMA Solar and Hochschild Mining
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SMA and Hochschild is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SMA Solar Technology and Hochschild Mining plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hochschild Mining plc and SMA Solar 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 SMA Solar Technology are associated (or correlated) with Hochschild Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hochschild Mining plc has no effect on the direction of SMA Solar i.e., SMA Solar and Hochschild Mining go up and down completely randomly.
Pair Corralation between SMA Solar and Hochschild Mining
Assuming the 90 days horizon SMA Solar Technology is expected to generate 1.08 times more return on investment than Hochschild Mining. However, SMA Solar is 1.08 times more volatile than Hochschild Mining plc. It trades about 0.12 of its potential returns per unit of risk. Hochschild Mining plc is currently generating about 0.1 per unit of risk. If you would invest 2,270 in SMA Solar Technology on August 29, 2025 and sell it today you would earn a total of 854.00 from holding SMA Solar Technology or generate 37.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SMA Solar Technology vs. Hochschild Mining plc
Performance |
| Timeline |
| SMA Solar Technology |
| Hochschild Mining plc |
SMA Solar and Hochschild Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMA Solar and Hochschild Mining
The main advantage of trading using opposite SMA Solar and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMA Solar position performs unexpectedly, Hochschild Mining 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 Hochschild Mining will offset losses from the drop in Hochschild Mining's long position.| SMA Solar vs. First Solar | SMA Solar vs. SolarEdge Technologies | SMA Solar vs. SMA SOLAR T | SMA Solar vs. SMA Solar Technology |
| Hochschild Mining vs. Tencent Music Entertainment | Hochschild Mining vs. Cincinnati Financial Corp | Hochschild Mining vs. UNIQA INSURANCE GR | Hochschild Mining vs. Synovus Financial Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |