Correlation Between Hercules Metals and Brunswick Exploration

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

By analyzing existing cross correlation between Hercules Metals Corp and Brunswick Exploration, you can compare the effects of market volatilities on Hercules Metals and Brunswick Exploration 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 Hercules Metals with a short position of Brunswick Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hercules Metals and Brunswick Exploration.

Diversification Opportunities for Hercules Metals and Brunswick Exploration

-0.71

Correlation Coefficient

Hercules Metals  Brunswick Exploration

Pay attention - limited upside

The 3 months correlation between Hercules and Brunswick is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hercules Metals Corp and Brunswick Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick Exploration and Hercules Metals 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 Hercules Metals Corp are associated (or correlated) with Brunswick Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick Exploration has no effect on the direction of Hercules Metals i.e., Hercules Metals and Brunswick Exploration go up and down completely randomly.

Pair Corralation between Hercules Metals and Brunswick Exploration

Assuming the 90 days horizon Hercules Metals Corp is expected to generate 0.68 times more return on investment than Brunswick Exploration. However, Hercules Metals Corp is 1.48 times less risky than Brunswick Exploration. It trades about 0.06 of its potential returns per unit of risk. Brunswick Exploration is currently generating about -0.06 per unit of risk. If you would invest  59.00  in Hercules Metals Corp on April 2, 2025 and sell it today you would earn a total of  6.00  from holding Hercules Metals Corp or generate 10.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Hercules Metals Corp  vs.  Brunswick Exploration

Hercules Metals Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hercules Metals Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Hercules Metals showed solid returns over the last few months and may actually be approaching a breakup point.

Brunswick Exploration

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brunswick Exploration has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Hercules Metals and Brunswick Exploration

The main advantage of trading using opposite Hercules Metals and Brunswick Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hercules Metals position performs unexpectedly, Brunswick Exploration 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 Brunswick Exploration will offset losses from the drop in Brunswick Exploration's long position.

The idea behind Hercules Metals Corp and Brunswick Exploration 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.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .