Correlation Between Hycroft Mining and Warrior Met
Can any of the company-specific risk be diversified away by investing in both Hycroft Mining and Warrior Met 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 Warrior Met 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 Warrior Met Coal, you can compare the effects of market volatilities on Hycroft Mining and Warrior Met 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 Warrior Met. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hycroft Mining and Warrior Met.
Diversification Opportunities for Hycroft Mining and Warrior Met
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hycroft and Warrior is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hycroft Mining Holding and Warrior Met Coal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warrior Met Coal 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 Warrior Met. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warrior Met Coal has no effect on the direction of Hycroft Mining i.e., Hycroft Mining and Warrior Met go up and down completely randomly.
Pair Corralation between Hycroft Mining and Warrior Met
Assuming the 90 days horizon Hycroft Mining is expected to generate 1.45 times less return on investment than Warrior Met. In addition to that, Hycroft Mining is 2.84 times more volatile than Warrior Met Coal. It trades about 0.04 of its total potential returns per unit of risk. Warrior Met Coal is currently generating about 0.19 per unit of volatility. If you would invest 6,218 in Warrior Met Coal on August 30, 2024 and sell it today you would earn a total of 812.00 from holding Warrior Met Coal or generate 13.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Hycroft Mining Holding vs. Warrior Met Coal
Performance |
| Timeline |
| Hycroft Mining Holding |
| Warrior Met Coal |
Hycroft Mining and Warrior Met Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hycroft Mining and Warrior Met
The main advantage of trading using opposite Hycroft Mining and Warrior Met positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hycroft Mining position performs unexpectedly, Warrior Met 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 Warrior Met will offset losses from the drop in Warrior Met's long position.| Hycroft Mining vs. Hycroft Mining Holding | Hycroft Mining vs. Hycroft Mining Holding | Hycroft Mining vs. Hall of Fame |
| Warrior Met vs. SunCoke Energy | Warrior Met vs. Arch Resources | Warrior Met vs. Alpha Metallurgical Resources | Warrior Met vs. American Resources 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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