Correlation Between AngloGold Ashanti and Hecla Mining
Can any of the company-specific risk be diversified away by investing in both AngloGold Ashanti 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 AngloGold Ashanti and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AngloGold Ashanti plc and Hecla Mining, you can compare the effects of market volatilities on AngloGold Ashanti 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 AngloGold Ashanti with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AngloGold Ashanti and Hecla Mining.
Diversification Opportunities for AngloGold Ashanti and Hecla Mining
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AngloGold and Hecla is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding AngloGold Ashanti plc and Hecla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and AngloGold Ashanti 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 AngloGold Ashanti 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 AngloGold Ashanti i.e., AngloGold Ashanti and Hecla Mining go up and down completely randomly.
Pair Corralation between AngloGold Ashanti and Hecla Mining
Allowing for the 90-day total investment horizon AngloGold Ashanti is expected to generate 1.38 times less return on investment than Hecla Mining. But when comparing it to its historical volatility, AngloGold Ashanti plc is 1.17 times less risky than Hecla Mining. It trades about 0.26 of its potential returns per unit of risk. Hecla Mining is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 354.00 in Hecla Mining on January 20, 2024 and sell it today you would earn a total of 174.00 from holding Hecla Mining or generate 49.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
AngloGold Ashanti plc vs. Hecla Mining
Performance |
| Timeline |
| AngloGold Ashanti plc |
| Hecla Mining |
AngloGold Ashanti and Hecla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AngloGold Ashanti and Hecla Mining
The main advantage of trading using opposite AngloGold Ashanti and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AngloGold Ashanti 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.| AngloGold Ashanti vs. Harmony Gold Mining | AngloGold Ashanti vs. Eldorado Gold Corp | AngloGold Ashanti vs. Kinross Gold | AngloGold Ashanti vs. Pan American Silver |
| Hecla Mining vs. SilverCrest Metals | Hecla Mining vs. Avino Silver Gold | Hecla Mining vs. New Pacific Metals | Hecla Mining vs. Gatos Silver |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |