Correlation Between Gold Royalty and Hecla Mining
Can any of the company-specific risk be diversified away by investing in both Gold Royalty 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 Gold Royalty and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Royalty Corp and Hecla Mining, you can compare the effects of market volatilities on Gold Royalty 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 Gold Royalty with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Royalty and Hecla Mining.
Diversification Opportunities for Gold Royalty and Hecla Mining
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gold and Hecla is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Gold Royalty Corp and Hecla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and Gold Royalty 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 Gold Royalty Corp 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 Gold Royalty i.e., Gold Royalty and Hecla Mining go up and down completely randomly.
Pair Corralation between Gold Royalty and Hecla Mining
Given the investment horizon of 90 days Gold Royalty Corp is expected to generate 1.1 times more return on investment than Hecla Mining. However, Gold Royalty is 1.1 times more volatile than Hecla Mining. It trades about -0.3 of its potential returns per unit of risk. Hecla Mining is currently generating about -0.45 per unit of risk. If you would invest 149.00 in Gold Royalty Corp on August 28, 2024 and sell it today you would lose (23.00) from holding Gold Royalty Corp or give up 15.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Royalty Corp vs. Hecla Mining
Performance |
| Timeline |
| Gold Royalty Corp |
| Hecla Mining |
Gold Royalty and Hecla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Royalty and Hecla Mining
The main advantage of trading using opposite Gold Royalty and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Royalty 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.| Gold Royalty vs. Endeavour Silver Corp | Gold Royalty vs. SilverCrest Metals | Gold Royalty vs. Platinum Group Metals | Gold Royalty vs. New Pacific Metals |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |