Correlation Between Hecla Mining and Vitec Software
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Vitec Software 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 Vitec Software 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 Vitec Software Group, you can compare the effects of market volatilities on Hecla Mining and Vitec Software 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 Vitec Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Vitec Software.
Diversification Opportunities for Hecla Mining and Vitec Software
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hecla and Vitec is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining Co and Vitec Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitec Software 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 Vitec Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitec Software Group has no effect on the direction of Hecla Mining i.e., Hecla Mining and Vitec Software go up and down completely randomly.
Pair Corralation between Hecla Mining and Vitec Software
Assuming the 90 days trading horizon Hecla Mining Co is expected to generate 0.72 times more return on investment than Vitec Software. However, Hecla Mining Co is 1.39 times less risky than Vitec Software. It trades about 0.25 of its potential returns per unit of risk. Vitec Software Group is currently generating about 0.09 per unit of risk. If you would invest 507.00 in Hecla Mining Co on October 25, 2024 and sell it today you would earn a total of 53.00 from holding Hecla Mining Co or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hecla Mining Co vs. Vitec Software Group
Performance |
| Timeline |
| Hecla Mining |
| Vitec Software Group |
Hecla Mining and Vitec Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Vitec Software
The main advantage of trading using opposite Hecla Mining and Vitec Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Vitec Software 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 Vitec Software will offset losses from the drop in Vitec Software'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 |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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