Correlation Between Bloomsbury Publishing and Hecla Mining

Can any of the company-specific risk be diversified away by investing in both Bloomsbury Publishing 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 Bloomsbury Publishing and Hecla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bloomsbury Publishing Plc and Hecla Mining Co, you can compare the effects of market volatilities on Bloomsbury Publishing 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 Bloomsbury Publishing with a short position of Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomsbury Publishing and Hecla Mining.

Diversification Opportunities for Bloomsbury Publishing and Hecla Mining

-0.56

Correlation Coefficient

Bloomsbury Publishing  Hecla Mining

Excellent diversification

The 3 months correlation between Bloomsbury and Hecla is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bloomsbury Publishing Plc and Hecla Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining and Bloomsbury Publishing 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 Bloomsbury Publishing 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 Bloomsbury Publishing i.e., Bloomsbury Publishing and Hecla Mining go up and down completely randomly.

Pair Corralation between Bloomsbury Publishing and Hecla Mining

Assuming the 90 days trading horizon Bloomsbury Publishing Plc is expected to under-perform the Hecla Mining. But the stock apears to be less risky and, when comparing its historical volatility, Bloomsbury Publishing Plc is 2.22 times less risky than Hecla Mining. The stock trades about -0.05 of its potential returns per unit of risk. The Hecla Mining Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  566.00  in Hecla Mining Co on April 2, 2025 and sell it today you would earn a total of  25.00  from holding Hecla Mining Co or generate 4.42% return on investment over 90 days.

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

Bloomsbury Publishing Plc  vs.  Hecla Mining Co

Bloomsbury Publishing Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bloomsbury Publishing Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Hecla Mining

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hecla Mining Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Hecla Mining may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Bloomsbury Publishing and Hecla Mining

The main advantage of trading using opposite Bloomsbury Publishing and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomsbury Publishing 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.

The idea behind Bloomsbury Publishing Plc and Hecla Mining Co 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.