Correlation Between XLMedia PLC and Hecla Mining
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC 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 XLMedia PLC and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Hecla Mining Co, you can compare the effects of market volatilities on XLMedia PLC 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 XLMedia PLC with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Hecla Mining.
Diversification Opportunities for XLMedia PLC and Hecla Mining
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between XLMedia and Hecla is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Hecla Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and XLMedia PLC 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 XLMedia PLC 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 XLMedia PLC i.e., XLMedia PLC and Hecla Mining go up and down completely randomly.
Pair Corralation between XLMedia PLC and Hecla Mining
Assuming the 90 days trading horizon XLMedia PLC is expected to generate 1.28 times less return on investment than Hecla Mining. In addition to that, XLMedia PLC is 1.51 times more volatile than Hecla Mining Co. It trades about 0.0 of its total potential returns per unit of risk. Hecla Mining Co is currently generating about 0.01 per unit of volatility. If you would invest 634.00 in Hecla Mining Co on October 16, 2024 and sell it today you would lose (125.00) from holding Hecla Mining Co or give up 19.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
XLMedia PLC vs. Hecla Mining Co
Performance |
| Timeline |
| XLMedia PLC |
| Hecla Mining |
XLMedia PLC and Hecla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Hecla Mining
The main advantage of trading using opposite XLMedia PLC and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC 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.| XLMedia PLC vs. Bell Food Group | XLMedia PLC vs. Axfood AB | XLMedia PLC vs. Leroy Seafood Group | XLMedia PLC vs. GlobalData PLC |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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