Correlation Between Technology Select and Hycroft Mining

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Can any of the company-specific risk be diversified away by investing in both Technology Select 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 Technology Select and Hycroft Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Technology Select Sector and Hycroft Mining Holding, you can compare the effects of market volatilities on Technology Select 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 Technology Select with a short position of Hycroft Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technology Select and Hycroft Mining.

Diversification Opportunities for Technology Select and Hycroft Mining

-0.42
  Correlation Coefficient

Very good diversification

The 3 months correlation between Technology and Hycroft is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Technology Select Sector 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 Technology Select 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 Technology Select Sector 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 Technology Select i.e., Technology Select and Hycroft Mining go up and down completely randomly.

Pair Corralation between Technology Select and Hycroft Mining

Considering the 90-day investment horizon Technology Select Sector is expected to generate 0.06 times more return on investment than Hycroft Mining. However, Technology Select Sector is 16.26 times less risky than Hycroft Mining. It trades about 0.13 of its potential returns per unit of risk. Hycroft Mining Holding is currently generating about -0.09 per unit of risk. If you would invest  26,378  in Technology Select Sector on August 10, 2025 and sell it today you would earn a total of  2,438  from holding Technology Select Sector or generate 9.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy62.5%
ValuesDaily Returns

Technology Select Sector  vs.  Hycroft Mining Holding

 Performance 
       Timeline  
Technology Select Sector 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Technology Select Sector are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain essential indicators, Technology Select may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Hycroft Mining Holding 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Hycroft Mining Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Technology Select and Hycroft Mining Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Technology Select and Hycroft Mining

The main advantage of trading using opposite Technology Select and Hycroft Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technology Select 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.
The idea behind Technology Select Sector and Hycroft Mining Holding 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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