Correlation Between Hecla Mining and Scottie Resources
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Scottie Resources 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 Scottie Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hecla Mining and Scottie Resources Corp, you can compare the effects of market volatilities on Hecla Mining and Scottie Resources 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 Scottie Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Scottie Resources.
Diversification Opportunities for Hecla Mining and Scottie Resources
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hecla and Scottie is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining and Scottie Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scottie Resources Corp 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 Scottie Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scottie Resources Corp has no effect on the direction of Hecla Mining i.e., Hecla Mining and Scottie Resources go up and down completely randomly.
Pair Corralation between Hecla Mining and Scottie Resources
Allowing for the 90-day total investment horizon Hecla Mining is expected to generate 176.87 times less return on investment than Scottie Resources. But when comparing it to its historical volatility, Hecla Mining is 16.83 times less risky than Scottie Resources. It trades about 0.01 of its potential returns per unit of risk. Scottie Resources Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Scottie Resources Corp on August 31, 2024 and sell it today you would lose (10.00) from holding Scottie Resources Corp or give up 45.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hecla Mining vs. Scottie Resources Corp
Performance |
| Timeline |
| Hecla Mining |
| Scottie Resources Corp |
Hecla Mining and Scottie Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Scottie Resources
The main advantage of trading using opposite Hecla Mining and Scottie Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Scottie Resources 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 Scottie Resources will offset losses from the drop in Scottie Resources' long position.| Hecla Mining vs. SilverCrest Metals | Hecla Mining vs. McEwen Mining | Hecla Mining vs. Avino Silver Gold | Hecla Mining vs. Metalla Royalty Streaming |
| Scottie Resources vs. Blackrock Silver Corp | Scottie Resources vs. AbraSilver Resource Corp | Scottie Resources vs. CMC Metals | Scottie Resources vs. Metallic Minerals Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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