Correlation Between Yamana Gold and Hecla Mining
Can any of the company-specific risk be diversified away by investing in both Yamana Gold 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 Yamana Gold and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yamana Gold and Hecla Mining, you can compare the effects of market volatilities on Yamana Gold 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 Yamana Gold with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yamana Gold and Hecla Mining.
Diversification Opportunities for Yamana Gold and Hecla Mining
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yamana and Hecla is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Yamana Gold and Hecla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and Yamana Gold 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 Yamana Gold 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 Yamana Gold i.e., Yamana Gold and Hecla Mining go up and down completely randomly.
Pair Corralation between Yamana Gold and Hecla Mining
If you would invest 501.00 in Hecla Mining on January 24, 2024 and sell it today you would earn a total of 5.00 from holding Hecla Mining or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.49% |
| Values | Daily Returns |
Yamana Gold vs. Hecla Mining
Performance |
| Timeline |
| Yamana Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hecla Mining |
Yamana Gold and Hecla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yamana Gold and Hecla Mining
The main advantage of trading using opposite Yamana Gold and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yamana Gold 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.| Yamana Gold vs. Agnico Eagle Mines | Yamana Gold vs. Wheaton Precious Metals | Yamana Gold vs. Newmont Goldcorp Corp | Yamana Gold vs. Kinross Gold |
| Hecla Mining vs. SilverCrest Metals | Hecla Mining vs. Avino Silver Gold | Hecla Mining vs. New Pacific Metals | Hecla Mining vs. Gatos Silver |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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