Correlation Between Hycroft Mining and Mullen Automotive
Can any of the company-specific risk be diversified away by investing in both Hycroft Mining and Mullen Automotive 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 Hycroft Mining and Mullen Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hycroft Mining Holding and Mullen Automotive, you can compare the effects of market volatilities on Hycroft Mining and Mullen Automotive 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 Hycroft Mining with a short position of Mullen Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hycroft Mining and Mullen Automotive.
Diversification Opportunities for Hycroft Mining and Mullen Automotive
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hycroft and Mullen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hycroft Mining Holding and Mullen Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mullen Automotive and Hycroft 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 Hycroft Mining Holding are associated (or correlated) with Mullen Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mullen Automotive has no effect on the direction of Hycroft Mining i.e., Hycroft Mining and Mullen Automotive go up and down completely randomly.
Pair Corralation between Hycroft Mining and Mullen Automotive
Given the investment horizon of 90 days Hycroft Mining Holding is expected to generate 0.35 times more return on investment than Mullen Automotive. However, Hycroft Mining Holding is 2.85 times less risky than Mullen Automotive. It trades about -0.06 of its potential returns per unit of risk. Mullen Automotive is currently generating about -0.26 per unit of risk. If you would invest 369.00 in Hycroft Mining Holding on August 24, 2024 and sell it today you would lose (130.00) from holding Hycroft Mining Holding or give up 35.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hycroft Mining Holding vs. Mullen Automotive
Performance |
| Timeline |
| Hycroft Mining Holding |
| Mullen Automotive |
Hycroft Mining and Mullen Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hycroft Mining and Mullen Automotive
The main advantage of trading using opposite Hycroft Mining and Mullen Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hycroft Mining position performs unexpectedly, Mullen Automotive 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 Mullen Automotive will offset losses from the drop in Mullen Automotive's long position.| Hycroft Mining vs. Agnico Eagle Mines | Hycroft Mining vs. B2Gold Corp | Hycroft Mining vs. Pan American Silver | Hycroft Mining vs. Gold Fields Ltd |
| Mullen Automotive vs. Hycroft Mining Holding | Mullen Automotive vs. Imperial Petroleum | Mullen Automotive vs. Camber Energy |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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