Correlation Between Atalaya Mining and Hecla Mining
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining and Hecla Mining 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 Atalaya Mining and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and Hecla Mining Co, you can compare the effects of market volatilities on Atalaya Mining and Hecla Mining 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 Atalaya Mining with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and Hecla Mining.
Diversification Opportunities for Atalaya Mining and Hecla Mining
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atalaya and Hecla is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Hecla Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and Atalaya 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 Atalaya Mining are associated (or correlated) with Hecla Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hecla Mining has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Hecla Mining go up and down completely randomly.
Pair Corralation between Atalaya Mining and Hecla Mining
Assuming the 90 days trading horizon Atalaya Mining is expected to generate 3.71 times less return on investment than Hecla Mining. But when comparing it to its historical volatility, Atalaya Mining is 1.24 times less risky than Hecla Mining. It trades about 0.08 of its potential returns per unit of risk. Hecla Mining Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 509.00 in Hecla Mining Co on October 23, 2024 and sell it today you would earn a total of 51.00 from holding Hecla Mining Co or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Atalaya Mining vs. Hecla Mining Co
Performance |
| Timeline |
| Atalaya Mining |
| Hecla Mining |
Atalaya Mining and Hecla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atalaya Mining and Hecla Mining
The main advantage of trading using opposite Atalaya Mining and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, Hecla Mining 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 Hecla Mining will offset losses from the drop in Hecla Mining's long position.| Atalaya Mining vs. Givaudan SA | Atalaya Mining vs. Antofagasta PLC | Atalaya Mining vs. Ferrexpo PLC | Atalaya Mining vs. Amaroq Minerals |
| Hecla Mining vs. Vulcan Materials Co | Hecla Mining vs. Wheaton Precious Metals | Hecla Mining vs. Gaztransport et Technigaz | Hecla Mining vs. Delta Air Lines |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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