Correlation Between Hecla Mining and Summa Silver
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Summa 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 Summa 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 Summa Silver Corp, you can compare the effects of market volatilities on Hecla Mining and Summa 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 Summa Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Summa Silver.
Diversification Opportunities for Hecla Mining and Summa Silver
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hecla and Summa is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining and Summa Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summa Silver 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 Summa Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summa Silver Corp has no effect on the direction of Hecla Mining i.e., Hecla Mining and Summa Silver go up and down completely randomly.
Pair Corralation between Hecla Mining and Summa Silver
Allowing for the 90-day total investment horizon Hecla Mining is expected to generate 0.75 times more return on investment than Summa Silver. However, Hecla Mining is 1.33 times less risky than Summa Silver. It trades about 0.02 of its potential returns per unit of risk. Summa Silver Corp is currently generating about -0.1 per unit of risk. If you would invest 540.00 in Hecla Mining on September 2, 2024 and sell it today you would earn a total of 12.00 from holding Hecla Mining or generate 2.22% 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. Summa Silver Corp
Performance |
| Timeline |
| Hecla Mining |
| Summa Silver Corp |
Hecla Mining and Summa Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Summa Silver
The main advantage of trading using opposite Hecla Mining and Summa Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Summa 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 Summa Silver will offset losses from the drop in Summa 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 |
| Summa Silver vs. Defiance Silver Corp | Summa Silver vs. HUMANA INC | Summa Silver vs. SCOR PK | Summa Silver vs. Aquagold International |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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