Correlation Between Hecla Mining and Uniper SE
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Uniper SE 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 Uniper SE 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 Uniper SE, you can compare the effects of market volatilities on Hecla Mining and Uniper SE 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 Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Uniper SE.
Diversification Opportunities for Hecla Mining and Uniper SE
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hecla and Uniper is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining Co and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE 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 Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Hecla Mining i.e., Hecla Mining and Uniper SE go up and down completely randomly.
Pair Corralation between Hecla Mining and Uniper SE
Assuming the 90 days trading horizon Hecla Mining Co is expected to generate 0.99 times more return on investment than Uniper SE. However, Hecla Mining Co is 1.01 times less risky than Uniper SE. It trades about 0.01 of its potential returns per unit of risk. Uniper SE is currently generating about 0.0 per unit of risk. If you would invest 599.00 in Hecla Mining Co on October 9, 2024 and sell it today you would lose (80.00) from holding Hecla Mining Co or give up 13.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Hecla Mining Co vs. Uniper SE
Performance |
| Timeline |
| Hecla Mining |
| Uniper SE |
Hecla Mining and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Uniper SE
The main advantage of trading using opposite Hecla Mining and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE's long position.| Hecla Mining vs. Vitec Software Group | Hecla Mining vs. Scandinavian Tobacco Group | Hecla Mining vs. Medical Properties Trust | Hecla Mining vs. Fevertree Drinks Plc |
| Uniper SE vs. Broadcom | Uniper SE vs. Costco Wholesale Corp | Uniper SE vs. Ross Stores | Uniper SE vs. Hochschild Mining 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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