Correlation Between Hecla Mining and Southern Silver
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Southern Silver 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 Southern Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hecla Mining and Southern Silver Exploration, you can compare the effects of market volatilities on Hecla Mining and Southern Silver 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 Southern Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Southern Silver.
Diversification Opportunities for Hecla Mining and Southern Silver
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hecla and Southern is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining and Southern Silver Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Silver Expl 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 Southern Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Silver Expl has no effect on the direction of Hecla Mining i.e., Hecla Mining and Southern Silver go up and down completely randomly.
Pair Corralation between Hecla Mining and Southern Silver
Allowing for the 90-day total investment horizon Hecla Mining is expected to generate 0.36 times more return on investment than Southern Silver. However, Hecla Mining is 2.77 times less risky than Southern Silver. It trades about 0.11 of its potential returns per unit of risk. Southern Silver Exploration is currently generating about -0.01 per unit of risk. If you would invest 557.00 in Hecla Mining on September 12, 2024 and sell it today you would earn a total of 30.00 from holding Hecla Mining or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hecla Mining vs. Southern Silver Exploration
Performance |
| Timeline |
| Hecla Mining |
| Southern Silver Expl |
Hecla Mining and Southern Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Southern Silver
The main advantage of trading using opposite Hecla Mining and Southern Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Southern Silver 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 Southern Silver will offset losses from the drop in Southern Silver'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 |
| Southern Silver vs. Gold79 Mines | Southern Silver vs. Arctic Star Exploration | Southern Silver vs. Arras Minerals Corp | Southern Silver vs. American Creek Resources |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |