Correlation Between Hecla Mining and FMC
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and FMC 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 FMC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hecla Mining and FMC Corporation, you can compare the effects of market volatilities on Hecla Mining and FMC 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 FMC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and FMC.
Diversification Opportunities for Hecla Mining and FMC
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hecla and FMC is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining and FMC Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FMC Corporation 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 are associated (or correlated) with FMC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FMC Corporation has no effect on the direction of Hecla Mining i.e., Hecla Mining and FMC go up and down completely randomly.
Pair Corralation between Hecla Mining and FMC
Allowing for the 90-day total investment horizon Hecla Mining is expected to generate 0.99 times more return on investment than FMC. However, Hecla Mining is 1.01 times less risky than FMC. It trades about 0.06 of its potential returns per unit of risk. FMC Corporation is currently generating about -0.03 per unit of risk. If you would invest 416.00 in Hecla Mining on November 9, 2024 and sell it today you would earn a total of 185.00 from holding Hecla Mining or generate 44.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hecla Mining vs. FMC Corp.
Performance |
| Timeline |
| Hecla Mining |
| FMC Corporation |
Hecla Mining and FMC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and FMC
The main advantage of trading using opposite Hecla Mining and FMC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, FMC 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 FMC will offset losses from the drop in FMC's long position.| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |