Correlation Between Hecla Mining and MT Bank
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and MT Bank 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 MT Bank 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 MT Bank Corp, you can compare the effects of market volatilities on Hecla Mining and MT Bank 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 MT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and MT Bank.
Diversification Opportunities for Hecla Mining and MT Bank
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hecla and 0JW2 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining Co and MT Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT Bank Corp 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 MT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT Bank Corp has no effect on the direction of Hecla Mining i.e., Hecla Mining and MT Bank go up and down completely randomly.
Pair Corralation between Hecla Mining and MT Bank
Assuming the 90 days trading horizon Hecla Mining is expected to generate 1.25 times less return on investment than MT Bank. In addition to that, Hecla Mining is 1.92 times more volatile than MT Bank Corp. It trades about 0.02 of its total potential returns per unit of risk. MT Bank Corp is currently generating about 0.04 per unit of volatility. If you would invest 14,642 in MT Bank Corp on October 25, 2024 and sell it today you would earn a total of 4,906 from holding MT Bank Corp or generate 33.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.75% |
| Values | Daily Returns |
Hecla Mining Co vs. MT Bank Corp
Performance |
| Timeline |
| Hecla Mining |
| MT Bank Corp |
Hecla Mining and MT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and MT Bank
The main advantage of trading using opposite Hecla Mining and MT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, MT Bank 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 MT Bank will offset losses from the drop in MT Bank's long position.| Hecla Mining vs. Advanced Medical Solutions | Hecla Mining vs. Bankers Investment Trust | Hecla Mining vs. Playtech Plc | Hecla Mining vs. Medical Properties Trust |
| MT Bank vs. Costco Wholesale Corp | MT Bank vs. Games Workshop Group | MT Bank vs. Hochschild Mining plc | MT Bank vs. Tata Steel Limited |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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