Correlation Between TRON and Hecla Mining

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

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

Diversification Opportunities for TRON and Hecla Mining

-0.63

Correlation Coefficient

TRON  Hecla Mining

Excellent diversification

The 3 months correlation between TRON and Hecla is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding TRON and Hecla Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and TRON 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 TRON 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 TRON i.e., TRON and Hecla Mining go up and down completely randomly.

Pair Corralation between TRON and Hecla Mining

Assuming the 90 days trading horizon TRON is expected to generate 1.71 times more return on investment than Hecla Mining. However, TRON is 1.71 times more volatile than Hecla Mining Co. It trades about -0.06 of its potential returns per unit of risk. Hecla Mining Co is currently generating about -0.24 per unit of risk. If you would invest  27.00  in TRON on October 10, 2024 and sell it today you would lose (2.00) from holding TRON or give up 7.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

TRON  vs.  Hecla Mining Co

TRON

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TRON are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, TRON exhibited solid returns over the last few months and may actually be approaching a breakup point.

Hecla Mining

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with TRON and Hecla Mining

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

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.