Correlation Between Hecla Mining and Compagnie Plastic
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Compagnie Plastic 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 Compagnie Plastic 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 Compagnie Plastic Omnium, you can compare the effects of market volatilities on Hecla Mining and Compagnie Plastic 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 Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Compagnie Plastic.
Diversification Opportunities for Hecla Mining and Compagnie Plastic
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hecla and Compagnie is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining Co and Compagnie Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Plastic Omnium 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 Compagnie Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Plastic Omnium has no effect on the direction of Hecla Mining i.e., Hecla Mining and Compagnie Plastic go up and down completely randomly.
Pair Corralation between Hecla Mining and Compagnie Plastic
Assuming the 90 days trading horizon Hecla Mining Co is expected to generate 1.07 times more return on investment than Compagnie Plastic. However, Hecla Mining is 1.07 times more volatile than Compagnie Plastic Omnium. It trades about 0.24 of its potential returns per unit of risk. Compagnie Plastic Omnium is currently generating about -0.01 per unit of risk. If you would invest 517.00 in Hecla Mining Co on November 7, 2024 and sell it today you would earn a total of 76.00 from holding Hecla Mining Co or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hecla Mining Co vs. Compagnie Plastic Omnium
Performance |
| Timeline |
| Hecla Mining |
| Compagnie Plastic Omnium |
Hecla Mining and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Compagnie Plastic
The main advantage of trading using opposite Hecla Mining and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Compagnie Plastic 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 Compagnie Plastic will offset losses from the drop in Compagnie Plastic's long position.| Hecla Mining vs. Roadside Real Estate | Hecla Mining vs. Hochschild Mining plc | Hecla Mining vs. Naked Wines plc | Hecla Mining vs. Infineon Technologies AG |
| Compagnie Plastic vs. Cornish Metals | Compagnie Plastic vs. Tatton Asset Management | Compagnie Plastic vs. URU Metals | Compagnie Plastic vs. Fulcrum Metals PLC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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