Correlation Between Hecla Mining and Sage Group
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Sage Group 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 Sage Group 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 Sage Group PLC, you can compare the effects of market volatilities on Hecla Mining and Sage Group 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 Sage Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Sage Group.
Diversification Opportunities for Hecla Mining and Sage Group
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hecla and Sage is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining Co and Sage Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sage Group 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 Sage Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sage Group PLC has no effect on the direction of Hecla Mining i.e., Hecla Mining and Sage Group go up and down completely randomly.
Pair Corralation between Hecla Mining and Sage Group
Assuming the 90 days trading horizon Hecla Mining Co is expected to under-perform the Sage Group. In addition to that, Hecla Mining is 1.29 times more volatile than Sage Group PLC. It trades about -0.01 of its total potential returns per unit of risk. Sage Group PLC is currently generating about 0.2 per unit of volatility. If you would invest 99,759 in Sage Group PLC on November 6, 2024 and sell it today you would earn a total of 33,741 from holding Sage Group PLC or generate 33.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Hecla Mining Co vs. Sage Group PLC
Performance |
| Timeline |
| Hecla Mining |
| Sage Group PLC |
Hecla Mining and Sage Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Sage Group
The main advantage of trading using opposite Hecla Mining and Sage Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Sage Group 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 Sage Group will offset losses from the drop in Sage Group's long position.| Hecla Mining vs. Roadside Real Estate | Hecla Mining vs. Hochschild Mining plc | Hecla Mining vs. Naked Wines plc | Hecla Mining vs. Infineon Technologies AG |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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