Correlation Between ImmuPharma PLC and Hecla Mining

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

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

Diversification Opportunities for ImmuPharma PLC and Hecla Mining

0.57

Correlation Coefficient

ImmuPharma PLC  Hecla Mining

Very weak diversification

The 3 months correlation between ImmuPharma and Hecla is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ImmuPharma PLC and Hecla Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and ImmuPharma PLC 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 ImmuPharma PLC 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 ImmuPharma PLC i.e., ImmuPharma PLC and Hecla Mining go up and down completely randomly.

Pair Corralation between ImmuPharma PLC and Hecla Mining

Assuming the 90 days trading horizon ImmuPharma PLC is expected to generate 8.0 times more return on investment than Hecla Mining. However, ImmuPharma PLC is 8.0 times more volatile than Hecla Mining Co. It trades about 0.13 of its potential returns per unit of risk. Hecla Mining Co is currently generating about 0.08 per unit of risk. If you would invest  124.00  in ImmuPharma PLC on December 24, 2024 and sell it today you would earn a total of  226.00  from holding ImmuPharma PLC or generate 182.26% return on investment over 90 days.

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

ImmuPharma PLC  vs.  Hecla Mining Co

ImmuPharma PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuPharma PLC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, ImmuPharma PLC exhibited solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with ImmuPharma PLC and Hecla Mining

The main advantage of trading using opposite ImmuPharma PLC and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuPharma PLC 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 ImmuPharma PLC and Hecla Mining Co 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 Valuation module to check real value of public entities based on technical and fundamental data.