Correlation Between Brixton Metals and Hecla Mining
Can any of the company-specific risk be diversified away by investing in both Brixton Metals 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 Brixton Metals and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brixton Metals and Hecla Mining, you can compare the effects of market volatilities on Brixton Metals 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 Brixton Metals with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixton Metals and Hecla Mining.
Diversification Opportunities for Brixton Metals and Hecla Mining
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brixton and Hecla is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Brixton Metals and Hecla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and Brixton Metals 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 Brixton Metals 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 Brixton Metals i.e., Brixton Metals and Hecla Mining go up and down completely randomly.
Pair Corralation between Brixton Metals and Hecla Mining
Assuming the 90 days horizon Brixton Metals is expected to under-perform the Hecla Mining. In addition to that, Brixton Metals is 1.27 times more volatile than Hecla Mining. It trades about -0.07 of its total potential returns per unit of risk. Hecla Mining is currently generating about 0.02 per unit of volatility. If you would invest 540.00 in Hecla Mining on September 2, 2024 and sell it today you would earn a total of 12.00 from holding Hecla Mining or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brixton Metals vs. Hecla Mining
Performance |
| Timeline |
| Brixton Metals |
| Hecla Mining |
Brixton Metals and Hecla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brixton Metals and Hecla Mining
The main advantage of trading using opposite Brixton Metals and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixton Metals 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.| Brixton Metals vs. Defiance Silver Corp | Brixton Metals vs. HUMANA INC | Brixton Metals vs. SCOR PK | Brixton Metals vs. Aquagold International |
| Hecla Mining vs. SilverCrest Metals | Hecla Mining vs. McEwen Mining | Hecla Mining vs. Avino Silver Gold | Hecla Mining vs. Metalla Royalty Streaming |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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