Correlation Between Hecla Mining and Berner Kantonalbank
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Berner Kantonalbank 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 Berner Kantonalbank 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 Berner Kantonalbank AG, you can compare the effects of market volatilities on Hecla Mining and Berner Kantonalbank 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 Berner Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Berner Kantonalbank.
Diversification Opportunities for Hecla Mining and Berner Kantonalbank
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hecla and Berner is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining Co and Berner Kantonalbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berner Kantonalbank 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 Berner Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berner Kantonalbank has no effect on the direction of Hecla Mining i.e., Hecla Mining and Berner Kantonalbank go up and down completely randomly.
Pair Corralation between Hecla Mining and Berner Kantonalbank
Assuming the 90 days trading horizon Hecla Mining Co is expected to generate 4.42 times more return on investment than Berner Kantonalbank. However, Hecla Mining is 4.42 times more volatile than Berner Kantonalbank AG. It trades about 0.17 of its potential returns per unit of risk. Berner Kantonalbank AG is currently generating about 0.3 per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hecla Mining Co vs. Berner Kantonalbank AG
Performance |
| Timeline |
| Hecla Mining |
| Berner Kantonalbank |
Hecla Mining and Berner Kantonalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Berner Kantonalbank
The main advantage of trading using opposite Hecla Mining and Berner Kantonalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Berner Kantonalbank 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 Berner Kantonalbank will offset losses from the drop in Berner Kantonalbank'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 |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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