Correlation Between Aris Mining and Hycroft Mining
Can any of the company-specific risk be diversified away by investing in both Aris Mining 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 Aris Mining and Hycroft Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aris Mining and Hycroft Mining Holding, you can compare the effects of market volatilities on Aris Mining 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 Aris Mining with a short position of Hycroft Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aris Mining and Hycroft Mining.
Diversification Opportunities for Aris Mining and Hycroft Mining
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aris and Hycroft is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aris Mining 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 Aris Mining 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 Aris Mining 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 Aris Mining i.e., Aris Mining and Hycroft Mining go up and down completely randomly.
Pair Corralation between Aris Mining and Hycroft Mining
Given the investment horizon of 90 days Aris Mining is expected to generate 2.03 times less return on investment than Hycroft Mining. But when comparing it to its historical volatility, Aris Mining is 5.33 times less risky than Hycroft Mining. It trades about 0.08 of its potential returns per unit of risk. Hycroft Mining Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2.81 in Hycroft Mining Holding on March 9, 2025 and sell it today you would lose (2.79) from holding Hycroft Mining Holding or give up 99.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.57% |
| Values | Daily Returns |
Aris Mining vs. Hycroft Mining Holding
Performance |
| Timeline |
| Aris Mining |
| Hycroft Mining Holding |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Aris Mining and Hycroft Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aris Mining and Hycroft Mining
The main advantage of trading using opposite Aris Mining and Hycroft Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aris Mining 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.| Aris Mining vs. Ryanair Holdings PLC | Aris Mining vs. SkyWest | Aris Mining vs. Copa Holdings SA | Aris Mining vs. LATAM Airlines Group |
| Hycroft Mining vs. Hycroft Mining Holding | Hycroft Mining vs. Hycroft Mining Holding | Hycroft Mining vs. Hall of Fame |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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