Correlation Between Hecla Mining and North American
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and North American 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 North American 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 The North American, you can compare the effects of market volatilities on Hecla Mining and North American 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 North American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and North American.
Diversification Opportunities for Hecla Mining and North American
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hecla and North is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining Co and The North American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North American 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 North American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North American has no effect on the direction of Hecla Mining i.e., Hecla Mining and North American go up and down completely randomly.
Pair Corralation between Hecla Mining and North American
Assuming the 90 days trading horizon Hecla Mining Co is expected to under-perform the North American. In addition to that, Hecla Mining is 2.34 times more volatile than The North American. It trades about -0.29 of its total potential returns per unit of risk. The North American is currently generating about -0.01 per unit of volatility. If you would invest 33,322 in The North American on October 8, 2024 and sell it today you would lose (122.00) from holding The North American or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Hecla Mining Co vs. The North American
Performance |
| Timeline |
| Hecla Mining |
| North American |
Hecla Mining and North American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and North American
The main advantage of trading using opposite Hecla Mining and North American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, North American 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 North American will offset losses from the drop in North American'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 |
| North American vs. SupplyMe Capital PLC | North American vs. SM Energy Co | North American vs. FuelCell Energy | North American vs. Grand Vision Media |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |