Correlation Between Hecla Mining and Elmos Semiconductor
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Elmos Semiconductor 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 Elmos Semiconductor 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 Elmos Semiconductor SE, you can compare the effects of market volatilities on Hecla Mining and Elmos Semiconductor 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 Elmos Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Elmos Semiconductor.
Diversification Opportunities for Hecla Mining and Elmos Semiconductor
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hecla and Elmos is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining Co and Elmos Semiconductor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elmos Semiconductor 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 Elmos Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elmos Semiconductor has no effect on the direction of Hecla Mining i.e., Hecla Mining and Elmos Semiconductor go up and down completely randomly.
Pair Corralation between Hecla Mining and Elmos Semiconductor
Assuming the 90 days trading horizon Hecla Mining Co is expected to generate 1.22 times more return on investment than Elmos Semiconductor. However, Hecla Mining is 1.22 times more volatile than Elmos Semiconductor SE. It trades about 0.07 of its potential returns per unit of risk. Elmos Semiconductor SE is currently generating about 0.03 per unit of risk. If you would invest 356.00 in Hecla Mining Co on November 4, 2024 and sell it today you would earn a total of 218.00 from holding Hecla Mining Co or generate 61.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Hecla Mining Co vs. Elmos Semiconductor SE
Performance |
| Timeline |
| Hecla Mining |
| Elmos Semiconductor |
Hecla Mining and Elmos Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Elmos Semiconductor
The main advantage of trading using opposite Hecla Mining and Elmos Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Elmos Semiconductor 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 Elmos Semiconductor will offset losses from the drop in Elmos Semiconductor's long position.| Hecla Mining vs. Symphony Environmental Technologies | Hecla Mining vs. Pan American Silver | Hecla Mining vs. Baker Steel Resources | Hecla Mining vs. Endeavour Mining Corp |
| Elmos Semiconductor vs. Bankers Investment Trust | Elmos Semiconductor vs. Ecofin Global Utilities | Elmos Semiconductor vs. Kinnevik Investment AB | Elmos Semiconductor vs. Lindsell Train 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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