Correlation Between Hecla Mining and Hecla Mining

Can any of the company-specific risk be diversified away by investing in both Hecla Mining 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 Hecla Mining and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hecla Mining and Hecla Mining, you can compare the effects of market volatilities on Hecla Mining 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 Hecla Mining with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Hecla Mining.

Diversification Opportunities for Hecla Mining and Hecla Mining

-0.06

Correlation Coefficient

Hecla Mining  Hecla Mining

Good diversification

The 3 months correlation between Hecla and Hecla is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining and Hecla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and Hecla 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 Hecla Mining 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 Hecla Mining i.e., Hecla Mining and Hecla Mining go up and down completely randomly.

Pair Corralation between Hecla Mining and Hecla Mining

Allowing for the 90-day total investment horizon Hecla Mining is expected to generate 1.37 times less return on investment than Hecla Mining. In addition to that, Hecla Mining is 3.49 times more volatile than Hecla Mining. It trades about 0.03 of its total potential returns per unit of risk. Hecla Mining is currently generating about 0.13 per unit of volatility. If you would invest  5,163  in Hecla Mining on September 2, 2024 and sell it today you would earn a total of  387.00  from holding Hecla Mining or generate 7.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hecla Mining  vs.  Hecla Mining

Hecla Mining

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hecla Mining are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, Hecla Mining is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Hecla Mining

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hecla Mining are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Hecla Mining may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Hecla Mining and Hecla Mining

The main advantage of trading using opposite Hecla Mining and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining 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.

The idea behind Hecla Mining and Hecla Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.