Correlation Between Hecla Mining and Morgan Advanced

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

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

Diversification Opportunities for Hecla Mining and Morgan Advanced

-0.09

Correlation Coefficient

Hecla Mining  Morgan Advanced

Good diversification

The 3 months correlation between Hecla and Morgan is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining Co and Morgan Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Advanced Materials 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 Co are associated (or correlated) with Morgan Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morgan Advanced Materials has no effect on the direction of Hecla Mining i.e., Hecla Mining and Morgan Advanced go up and down completely randomly.

Pair Corralation between Hecla Mining and Morgan Advanced

Assuming the 90 days trading horizon Hecla Mining Co is expected to generate 1.25 times more return on investment than Morgan Advanced. However, Hecla Mining is 1.25 times more volatile than Morgan Advanced Materials. It trades about 0.08 of its potential returns per unit of risk. Morgan Advanced Materials is currently generating about -0.15 per unit of risk. If you would invest  507.00  in Hecla Mining Co on December 24, 2024 and sell it today you would earn a total of  67.00  from holding Hecla Mining Co or generate 13.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Hecla Mining Co  vs.  Morgan Advanced Materials

Hecla Mining

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hecla Mining Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Hecla Mining unveiled solid returns over the last few months and may actually be approaching a breakup point.

Morgan Advanced Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Morgan Advanced Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Hecla Mining and Morgan Advanced

The main advantage of trading using opposite Hecla Mining and Morgan Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Morgan Advanced 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 Morgan Advanced will offset losses from the drop in Morgan Advanced's long position.

The idea behind Hecla Mining Co and Morgan Advanced Materials 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.