Correlation Between Hecla Mining and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and UNIQA Insurance 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 Hecla Mining and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hecla Mining Co and UNIQA Insurance Group, you can compare the effects of market volatilities on Hecla Mining and UNIQA Insurance 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 Hecla Mining with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and UNIQA Insurance.
Diversification Opportunities for Hecla Mining and UNIQA Insurance
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hecla and UNIQA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining Co and UNIQA Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA Insurance Group and Hecla 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 Hecla Mining Co are associated (or correlated) with UNIQA Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIQA Insurance Group has no effect on the direction of Hecla Mining i.e., Hecla Mining and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Hecla Mining and UNIQA Insurance
Assuming the 90 days trading horizon Hecla Mining Co is expected to under-perform the UNIQA Insurance. In addition to that, Hecla Mining is 2.52 times more volatile than UNIQA Insurance Group. It trades about -0.15 of its total potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.3 per unit of volatility. If you would invest 741.00 in UNIQA Insurance Group on October 12, 2024 and sell it today you would earn a total of 43.00 from holding UNIQA Insurance Group or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hecla Mining Co vs. UNIQA Insurance Group
Performance |
| Timeline |
| Hecla Mining |
| UNIQA Insurance Group |
Hecla Mining and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and UNIQA Insurance
The main advantage of trading using opposite Hecla Mining and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, UNIQA Insurance 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 UNIQA Insurance will offset losses from the drop in UNIQA Insurance's long position.| Hecla Mining vs. Walmart | Hecla Mining vs. BYD Co | Hecla Mining vs. Volkswagen AG | Hecla Mining vs. Volkswagen AG Non Vtg |
| UNIQA Insurance vs. Lundin Mining Corp | UNIQA Insurance vs. Hecla Mining Co | UNIQA Insurance vs. McEwen Mining | UNIQA Insurance vs. Anglo Asian Mining |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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