Correlation Between Almaden Minerals and Hycroft Mining
Can any of the company-specific risk be diversified away by investing in both Almaden Minerals and Hycroft 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 Almaden Minerals and Hycroft Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Almaden Minerals and Hycroft Mining Holding, you can compare the effects of market volatilities on Almaden Minerals and Hycroft 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 Almaden Minerals with a short position of Hycroft Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almaden Minerals and Hycroft Mining.
Diversification Opportunities for Almaden Minerals and Hycroft Mining
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Almaden and Hycroft is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Almaden Minerals and Hycroft Mining Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hycroft Mining Holding and Almaden Minerals 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 Almaden Minerals are associated (or correlated) with Hycroft Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hycroft Mining Holding has no effect on the direction of Almaden Minerals i.e., Almaden Minerals and Hycroft Mining go up and down completely randomly.
Pair Corralation between Almaden Minerals and Hycroft Mining
Considering the 90-day investment horizon Almaden Minerals is expected to under-perform the Hycroft Mining. In addition to that, Almaden Minerals is 2.74 times more volatile than Hycroft Mining Holding. It trades about -0.37 of its total potential returns per unit of risk. Hycroft Mining Holding is currently generating about 0.15 per unit of volatility. If you would invest 1.50 in Hycroft Mining Holding on January 29, 2024 and sell it today you would earn a total of 0.41 from holding Hycroft Mining Holding or generate 27.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 28.57% |
Values | Daily Returns |
Almaden Minerals vs. Hycroft Mining Holding
Performance |
Timeline |
Almaden Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hycroft Mining Holding |
Almaden Minerals and Hycroft Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Almaden Minerals and Hycroft Mining
The main advantage of trading using opposite Almaden Minerals and Hycroft Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almaden Minerals position performs unexpectedly, Hycroft 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 Hycroft Mining will offset losses from the drop in Hycroft Mining's long position.Almaden Minerals vs. K92 Mining | Almaden Minerals vs. Treasury Metals | Almaden Minerals vs. Moneta Gold | Almaden Minerals vs. Wesdome Gold Mines |
Hycroft Mining vs. K92 Mining | Hycroft Mining vs. Treasury Metals | Hycroft Mining vs. Moneta Gold | Hycroft Mining vs. Wesdome Gold Mines |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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