Correlation Between McEwen Mining and Hecla Mining
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Hecla 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 McEwen Mining and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Hecla Mining Co, you can compare the effects of market volatilities on McEwen Mining and Hecla 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 McEwen Mining with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Hecla Mining.
Diversification Opportunities for McEwen Mining and Hecla Mining
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between McEwen and Hecla is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Hecla Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and McEwen 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 McEwen Mining are associated (or correlated) with Hecla Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hecla Mining has no effect on the direction of McEwen Mining i.e., McEwen Mining and Hecla Mining go up and down completely randomly.
Pair Corralation between McEwen Mining and Hecla Mining
Assuming the 90 days trading horizon McEwen Mining is expected to generate 3.96 times less return on investment than Hecla Mining. But when comparing it to its historical volatility, McEwen Mining is 1.13 times less risky than Hecla Mining. It trades about 0.05 of its potential returns per unit of risk. Hecla Mining Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 524.00 in Hecla Mining Co on November 3, 2024 and sell it today you would earn a total of 50.00 from holding Hecla Mining Co or generate 9.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Hecla Mining Co
Performance |
| Timeline |
| McEwen Mining |
| Hecla Mining |
McEwen Mining and Hecla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Hecla Mining
The main advantage of trading using opposite McEwen Mining and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Hecla 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 Hecla Mining will offset losses from the drop in Hecla Mining's long position.| McEwen Mining vs. Verizon Communications | McEwen Mining vs. Aeorema Communications Plc | McEwen Mining vs. MyHealthChecked Plc | McEwen Mining vs. Primary Health Properties |
| Hecla Mining vs. Symphony Environmental Technologies | Hecla Mining vs. Pan American Silver | Hecla Mining vs. Baker Steel Resources | Hecla Mining vs. Endeavour Mining 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Correlations Find global opportunities by holding instruments from different markets |