Correlation Between Weiss Korea and Hecla Mining
Can any of the company-specific risk be diversified away by investing in both Weiss Korea 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 Weiss Korea and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weiss Korea Opportunity and Hecla Mining Co, you can compare the effects of market volatilities on Weiss Korea 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 Weiss Korea with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weiss Korea and Hecla Mining.
Diversification Opportunities for Weiss Korea and Hecla Mining
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Weiss and Hecla is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Weiss Korea Opportunity and Hecla Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and Weiss Korea 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 Weiss Korea Opportunity 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 Weiss Korea i.e., Weiss Korea and Hecla Mining go up and down completely randomly.
Pair Corralation between Weiss Korea and Hecla Mining
Assuming the 90 days trading horizon Weiss Korea Opportunity is expected to under-perform the Hecla Mining. But the stock apears to be less risky and, when comparing its historical volatility, Weiss Korea Opportunity is 1.68 times less risky than Hecla Mining. The stock trades about -0.28 of its potential returns per unit of risk. The Hecla Mining Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 540.00 in Hecla Mining Co on September 13, 2024 and sell it today you would earn a total of 41.00 from holding Hecla Mining Co or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weiss Korea Opportunity vs. Hecla Mining Co
Performance |
| Timeline |
| Weiss Korea Opportunity |
| Hecla Mining |
Weiss Korea and Hecla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weiss Korea and Hecla Mining
The main advantage of trading using opposite Weiss Korea and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weiss Korea 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.| Weiss Korea vs. Schroders Investment Trusts | Weiss Korea vs. Aurora Investment Trust | Weiss Korea vs. Neometals | Weiss Korea vs. Cornish Metals |
| Hecla Mining vs. Bloomsbury Publishing Plc | Hecla Mining vs. Monks Investment Trust | Hecla Mining vs. Schroders Investment Trusts | Hecla Mining vs. Fevertree Drinks Plc |
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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