Correlation Between Pfeiffer Vacuum and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Pfeiffer Vacuum and McEwen 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 Pfeiffer Vacuum and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfeiffer Vacuum Technology and McEwen Mining, you can compare the effects of market volatilities on Pfeiffer Vacuum and McEwen 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 Pfeiffer Vacuum with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfeiffer Vacuum and McEwen Mining.
Diversification Opportunities for Pfeiffer Vacuum and McEwen Mining
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pfeiffer and McEwen is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Pfeiffer Vacuum Technology and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Pfeiffer Vacuum 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 Pfeiffer Vacuum Technology are associated (or correlated) with McEwen Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McEwen Mining has no effect on the direction of Pfeiffer Vacuum i.e., Pfeiffer Vacuum and McEwen Mining go up and down completely randomly.
Pair Corralation between Pfeiffer Vacuum and McEwen Mining
Assuming the 90 days trading horizon Pfeiffer Vacuum Technology is expected to generate 0.18 times more return on investment than McEwen Mining. However, Pfeiffer Vacuum Technology is 5.66 times less risky than McEwen Mining. It trades about 0.03 of its potential returns per unit of risk. McEwen Mining is currently generating about -0.06 per unit of risk. If you would invest 15,191 in Pfeiffer Vacuum Technology on September 3, 2024 and sell it today you would earn a total of 299.00 from holding Pfeiffer Vacuum Technology or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Pfeiffer Vacuum Technology vs. McEwen Mining
Performance |
| Timeline |
| Pfeiffer Vacuum Tech |
| McEwen Mining |
Pfeiffer Vacuum and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfeiffer Vacuum and McEwen Mining
The main advantage of trading using opposite Pfeiffer Vacuum and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfeiffer Vacuum position performs unexpectedly, McEwen 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 McEwen Mining will offset losses from the drop in McEwen Mining's long position.| Pfeiffer Vacuum vs. Catalyst Media Group | Pfeiffer Vacuum vs. CATLIN GROUP | Pfeiffer Vacuum vs. Magnora ASA | Pfeiffer Vacuum vs. RTW Venture Fund |
| McEwen Mining vs. Evolution Gaming Group | McEwen Mining vs. Central Asia Metals | McEwen Mining vs. Blackrock World Mining | McEwen Mining vs. Hochschild Mining plc |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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