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
Summit Materials Inc vs Hecla Mining Company
Considering 30-days investment horizon, Summit Materials is expected to generate 8.14 times less return on investment than Hecla Mining. But when comparing it to its historical volatility, Summit Materials Inc is 2.98 times less risky than Hecla Mining. It trades about 0.05 of its potential returns per unit of risk. Hecla Mining Company is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 395 in Hecla Mining Company on December 21, 2017 and sell it today you would earn a total of 31 from holding Hecla Mining Company or generate 7.85% return on investment over 30 days.
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Very weak 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.
Compared to the overall equity markets, risk-adjusted returns on investments in Summit Materials Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Hecla Mining Company are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.