Correlation Between Hecla Mining and Hycroft Mining
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Hycroft 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 Hecla Mining and Hycroft Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hecla Mining and Hycroft Mining Holding, you can compare the effects of market volatilities on Hecla Mining and Hycroft 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 Hecla Mining with a short position of Hycroft Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Hycroft Mining.
Diversification Opportunities for Hecla Mining and Hycroft Mining
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hecla and Hycroft is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining and Hycroft Mining Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hycroft Mining Holding 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 Hycroft Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hycroft Mining Holding has no effect on the direction of Hecla Mining i.e., Hecla Mining and Hycroft Mining go up and down completely randomly.
Pair Corralation between Hecla Mining and Hycroft Mining
Allowing for the 90-day total investment horizon Hecla Mining is expected to generate 0.57 times more return on investment than Hycroft Mining. However, Hecla Mining is 1.75 times less risky than Hycroft Mining. It trades about 0.02 of its potential returns per unit of risk. Hycroft Mining Holding is currently generating about -0.01 per unit of risk. If you would invest 529.00 in Hecla Mining on August 24, 2024 and sell it today you would earn a total of 23.00 from holding Hecla Mining or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hecla Mining vs. Hycroft Mining Holding
Performance |
| Timeline |
| Hecla Mining |
| Hycroft Mining Holding |
Hecla Mining and Hycroft Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Hycroft Mining
The main advantage of trading using opposite Hecla Mining and Hycroft Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Hycroft 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 Hycroft Mining will offset losses from the drop in Hycroft Mining'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 |
| Hycroft Mining vs. Agnico Eagle Mines | Hycroft Mining vs. B2Gold Corp | Hycroft Mining vs. Pan American Silver | Hycroft Mining vs. Gold Fields Ltd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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