Pair Correlation Between Summit Materials and Hecla Mining

This module allows you to analyze existing cross correlation between Summit Materials Inc and Hecla Mining Company. You can compare the effects of market volatilities on Summit Materials 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 Summit Materials with a short position of Hecla Mining. See also your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and Hecla Mining.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Summit Materials Inc  vs   Hecla Mining Company
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Summit Materials Inc is expected to generate 0.73 times more return on investment than Hecla Mining. However, Summit Materials Inc is 1.37 times less risky than Hecla Mining. It trades about 0.04 of its potential returns per unit of risk. Hecla Mining Company is currently generating about -0.06 per unit of risk. If you would invest  3,148  in Summit Materials Inc on September 23, 2017 and sell it today you would earn a total of  29  from holding Summit Materials Inc or generate 0.92% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Summit Materials and Hecla Mining
0.09

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Diversification

Significant diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Summit Materials Inc

  
2 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Summit Materials Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.

Hecla Mining

  
0 

Risk-Adjusted Performance

Over the last 30 days Hecla Mining Company has generated negative risk-adjusted returns adding no value to investors with long positions.