Correlation Between Hecla Mining and LBG Media
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and LBG Media 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 LBG Media 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 LBG Media PLC, you can compare the effects of market volatilities on Hecla Mining and LBG Media 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 LBG Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and LBG Media.
Diversification Opportunities for Hecla Mining and LBG Media
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hecla and LBG is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining Co and LBG Media PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LBG Media PLC 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 LBG Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LBG Media PLC has no effect on the direction of Hecla Mining i.e., Hecla Mining and LBG Media go up and down completely randomly.
Pair Corralation between Hecla Mining and LBG Media
Assuming the 90 days trading horizon Hecla Mining Co is expected to generate 1.56 times more return on investment than LBG Media. However, Hecla Mining is 1.56 times more volatile than LBG Media PLC. It trades about 0.01 of its potential returns per unit of risk. LBG Media PLC is currently generating about 0.02 per unit of risk. If you would invest 588.00 in Hecla Mining Co on October 30, 2024 and sell it today you would lose (52.00) from holding Hecla Mining Co or give up 8.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Hecla Mining Co vs. LBG Media PLC
Performance |
| Timeline |
| Hecla Mining |
| LBG Media PLC |
Hecla Mining and LBG Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and LBG Media
The main advantage of trading using opposite Hecla Mining and LBG Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, LBG Media 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 LBG Media will offset losses from the drop in LBG Media's long position.| Hecla Mining vs. Jacquet Metal Service | Hecla Mining vs. Cornish Metals | Hecla Mining vs. Europa Metals | Hecla Mining vs. Spotify Technology SA |
| LBG Media vs. Lindsell Train Investment | LBG Media vs. Planet Fitness Cl | LBG Media vs. Abingdon Health Plc | LBG Media vs. Ecclesiastical Insurance Office |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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