Correlation Between McEwen Mining and Finnair Oyj
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Finnair Oyj 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 McEwen Mining and Finnair Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Finnair Oyj, you can compare the effects of market volatilities on McEwen Mining and Finnair Oyj 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 McEwen Mining with a short position of Finnair Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Finnair Oyj.
Diversification Opportunities for McEwen Mining and Finnair Oyj
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between McEwen and Finnair is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Finnair Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnair Oyj and McEwen 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 McEwen Mining are associated (or correlated) with Finnair Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finnair Oyj has no effect on the direction of McEwen Mining i.e., McEwen Mining and Finnair Oyj go up and down completely randomly.
Pair Corralation between McEwen Mining and Finnair Oyj
Assuming the 90 days trading horizon McEwen Mining is expected to generate 6.61 times less return on investment than Finnair Oyj. In addition to that, McEwen Mining is 1.36 times more volatile than Finnair Oyj. It trades about 0.02 of its total potential returns per unit of risk. Finnair Oyj is currently generating about 0.17 per unit of volatility. If you would invest 233.00 in Finnair Oyj on November 9, 2024 and sell it today you would earn a total of 15.00 from holding Finnair Oyj or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
McEwen Mining vs. Finnair Oyj
Performance |
| Timeline |
| McEwen Mining |
| Finnair Oyj |
McEwen Mining and Finnair Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Finnair Oyj
The main advantage of trading using opposite McEwen Mining and Finnair Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Finnair Oyj 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 Finnair Oyj will offset losses from the drop in Finnair Oyj's long position.| McEwen Mining vs. Alaska Air Group | McEwen Mining vs. FC Investment Trust | McEwen Mining vs. Finnair Oyj | McEwen Mining vs. Vietnam Enterprise Investments |
| Finnair Oyj vs. Ashtead Technology Holdings | Finnair Oyj vs. Polar Capital Technology | Finnair Oyj vs. Software Circle plc | Finnair Oyj vs. DXC Technology Co |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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