Correlation Between Vulcan Materials and Hecla Mining
Can any of the company-specific risk be diversified away by investing in both Vulcan Materials 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 Vulcan Materials and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vulcan Materials Co and Hecla Mining Co, you can compare the effects of market volatilities on Vulcan Materials 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 Vulcan Materials with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vulcan Materials and Hecla Mining.
Diversification Opportunities for Vulcan Materials and Hecla Mining
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vulcan and Hecla is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Vulcan Materials Co and Hecla Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and Vulcan Materials 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 Vulcan Materials Co 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 Vulcan Materials i.e., Vulcan Materials and Hecla Mining go up and down completely randomly.
Pair Corralation between Vulcan Materials and Hecla Mining
Assuming the 90 days trading horizon Vulcan Materials is expected to generate 1.18 times less return on investment than Hecla Mining. But when comparing it to its historical volatility, Vulcan Materials Co is 1.82 times less risky than Hecla Mining. It trades about 0.26 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vulcan Materials Co vs. Hecla Mining Co
Performance |
| Timeline |
| Vulcan Materials |
| Hecla Mining |
Vulcan Materials and Hecla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vulcan Materials and Hecla Mining
The main advantage of trading using opposite Vulcan Materials and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vulcan Materials 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.| Vulcan Materials vs. Waste Management | Vulcan Materials vs. Worldwide Healthcare Trust | Vulcan Materials vs. Litigation Capital Management | Vulcan Materials vs. Sovereign Metals |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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