Correlation Between Silver Grail and Hecla Mining
Can any of the company-specific risk be diversified away by investing in both Silver Grail and Hecla Mining 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 Silver Grail and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Grail Resources and Hecla Mining, you can compare the effects of market volatilities on Silver Grail and Hecla Mining 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 Silver Grail with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Grail and Hecla Mining.
Diversification Opportunities for Silver Grail and Hecla Mining
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Silver and Hecla is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Silver Grail Resources and Hecla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and Silver Grail 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 Silver Grail Resources are associated (or correlated) with Hecla Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hecla Mining has no effect on the direction of Silver Grail i.e., Silver Grail and Hecla Mining go up and down completely randomly.
Pair Corralation between Silver Grail and Hecla Mining
Assuming the 90 days horizon Silver Grail Resources is expected to generate 15.07 times more return on investment than Hecla Mining. However, Silver Grail is 15.07 times more volatile than Hecla Mining. It trades about 0.15 of its potential returns per unit of risk. Hecla Mining is currently generating about -0.16 per unit of risk. If you would invest 7.00 in Silver Grail Resources on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Silver Grail Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver Grail Resources vs. Hecla Mining
Performance |
| Timeline |
| Silver Grail Resources |
| Hecla Mining |
Silver Grail and Hecla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Grail and Hecla Mining
The main advantage of trading using opposite Silver Grail and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Grail position performs unexpectedly, Hecla Mining 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 Hecla Mining will offset losses from the drop in Hecla Mining's long position.| Silver Grail vs. Defiance Silver Corp | Silver Grail vs. Southern Silver Exploration | Silver Grail vs. Alien Metals | Silver Grail vs. Gem Diamonds Limited |
| Hecla Mining vs. SilverCrest Metals | Hecla Mining vs. McEwen Mining | Hecla Mining vs. Avino Silver Gold | Hecla Mining vs. Metalla Royalty Streaming |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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