Correlation Between Hecla Mining and Osisko Gold
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Osisko Gold 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 Osisko Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hecla Mining and Osisko Gold Ro, you can compare the effects of market volatilities on Hecla Mining and Osisko Gold 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 Osisko Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Osisko Gold.
Diversification Opportunities for Hecla Mining and Osisko Gold
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hecla and Osisko is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining and Osisko Gold Ro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osisko Gold Ro 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 Osisko Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osisko Gold Ro has no effect on the direction of Hecla Mining i.e., Hecla Mining and Osisko Gold go up and down completely randomly.
Pair Corralation between Hecla Mining and Osisko Gold
Allowing for the 90-day total investment horizon Hecla Mining is expected to generate 2.45 times more return on investment than Osisko Gold. However, Hecla Mining is 2.45 times more volatile than Osisko Gold Ro. It trades about 0.32 of its potential returns per unit of risk. Osisko Gold Ro is currently generating about 0.05 per unit of risk. If you would invest 432.00 in Hecla Mining on January 20, 2024 and sell it today you would earn a total of 96.00 from holding Hecla Mining or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hecla Mining vs. Osisko Gold Ro
Performance |
| Timeline |
| Hecla Mining |
| Osisko Gold Ro |
Hecla Mining and Osisko Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Osisko Gold
The main advantage of trading using opposite Hecla Mining and Osisko Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Osisko Gold 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 Osisko Gold will offset losses from the drop in Osisko Gold's long position.| Hecla Mining vs. SilverCrest Metals | Hecla Mining vs. McEwen Mining | Hecla Mining vs. Avino Silver Gold | Hecla Mining vs. New Pacific Metals |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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