Correlation Between Avino Silver and Hecla Mining

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

By analyzing existing cross correlation between Avino Silver Gold and Hecla Mining, you can compare the effects of market volatilities on Avino Silver 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 Avino Silver with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avino Silver and Hecla Mining.

Diversification Opportunities for Avino Silver and Hecla Mining

0.4

Correlation Coefficient

Avino Silver  Hecla Mining

Very weak diversification

The 3 months correlation between Avino and Hecla is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and Hecla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and Avino Silver 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 Avino Silver 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 Avino Silver i.e., Avino Silver and Hecla Mining go up and down completely randomly.

Pair Corralation between Avino Silver and Hecla Mining

Considering the 90-day investment horizon Avino Silver Gold is expected to generate 4.28 times more return on investment than Hecla Mining. However, Avino Silver is 4.28 times more volatile than Hecla Mining. It trades about 0.02 of its potential returns per unit of risk. Hecla Mining is currently generating about 0.01 per unit of risk. If you would invest  89.00  in Avino Silver Gold on September 30, 2024 and sell it today you would earn a total of  0.00  from holding Avino Silver Gold or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Avino Silver Gold  vs.  Hecla Mining

Avino Silver Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Avino Silver Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Hecla Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hecla Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hecla Mining is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Avino Silver and Hecla Mining

The main advantage of trading using opposite Avino Silver and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avino Silver 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.

The idea behind Avino Silver Gold and Hecla Mining 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.