Correlation Between ScanTech and Hochschild Mining

Can any of the company-specific risk be diversified away by investing in both ScanTech 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 ScanTech and Hochschild Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ScanTech AI Systems and Hochschild Mining PLC, you can compare the effects of market volatilities on ScanTech 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 ScanTech with a short position of Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanTech and Hochschild Mining.

Diversification Opportunities for ScanTech and Hochschild Mining

0.11

Correlation Coefficient

ScanTech  Hochschild Mining

Average diversification

The 3 months correlation between ScanTech and Hochschild is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding ScanTech AI Systems 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 ScanTech 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 ScanTech AI Systems 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 ScanTech i.e., ScanTech and Hochschild Mining go up and down completely randomly.

Pair Corralation between ScanTech and Hochschild Mining

Given the investment horizon of 90 days ScanTech AI Systems is expected to under-perform the Hochschild Mining. In addition to that, ScanTech is 2.68 times more volatile than Hochschild Mining PLC. It trades about 0.0 of its total potential returns per unit of risk. Hochschild Mining PLC is currently generating about 0.02 per unit of volatility. If you would invest  368.00  in Hochschild Mining PLC on April 30, 2025 and sell it today you would earn a total of  3.00  from holding Hochschild Mining PLC or generate 0.82% return on investment over 90 days.

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

ScanTech AI Systems  vs.  Hochschild Mining PLC

ScanTech AI Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days ScanTech AI Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, ScanTech is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Hochschild Mining PLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hochschild Mining PLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Hochschild Mining may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ScanTech and Hochschild Mining

The main advantage of trading using opposite ScanTech and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanTech 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.

The idea behind ScanTech AI Systems and Hochschild Mining PLC 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.