Correlation Between Triple Flag and Hecla Mining
Can any of the company-specific risk be diversified away by investing in both Triple Flag 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 Triple Flag and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triple Flag Precious and Hecla Mining, you can compare the effects of market volatilities on Triple Flag 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 Triple Flag with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triple Flag and Hecla Mining.
Diversification Opportunities for Triple Flag and Hecla Mining
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Triple and Hecla is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Triple Flag Precious and Hecla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and Triple Flag 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 Triple Flag Precious 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 Triple Flag i.e., Triple Flag and Hecla Mining go up and down completely randomly.
Pair Corralation between Triple Flag and Hecla Mining
Given the investment horizon of 90 days Triple Flag Precious is expected to under-perform the Hecla Mining. In addition to that, Triple Flag is 1.7 times more volatile than Hecla Mining. It trades about -0.22 of its total potential returns per unit of risk. Hecla Mining is currently generating about 0.09 per unit of volatility. If you would invest 5,466 in Hecla Mining on August 27, 2024 and sell it today you would earn a total of 84.00 from holding Hecla Mining or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triple Flag Precious vs. Hecla Mining
Performance |
| Timeline |
| Triple Flag Precious |
| Hecla Mining |
Triple Flag and Hecla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triple Flag and Hecla Mining
The main advantage of trading using opposite Triple Flag and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triple Flag 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.| Triple Flag vs. Metalla Royalty Streaming | Triple Flag vs. Endeavour Silver Corp | Triple Flag vs. SilverCrest Metals | Triple Flag vs. Gatos Silver |
| Hecla Mining vs. Triple Flag Precious | Hecla Mining vs. McEwen Mining | Hecla Mining vs. Endeavour Silver Corp | Hecla Mining vs. Hecla Mining |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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