Correlation Between McEwen Mining and Pfeiffer Vacuum
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Pfeiffer Vacuum 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 Pfeiffer Vacuum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Pfeiffer Vacuum Technology, you can compare the effects of market volatilities on McEwen Mining and Pfeiffer Vacuum 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 Pfeiffer Vacuum. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Pfeiffer Vacuum.
Diversification Opportunities for McEwen Mining and Pfeiffer Vacuum
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between McEwen and Pfeiffer is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Pfeiffer Vacuum Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfeiffer Vacuum Tech 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 Pfeiffer Vacuum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfeiffer Vacuum Tech has no effect on the direction of McEwen Mining i.e., McEwen Mining and Pfeiffer Vacuum go up and down completely randomly.
Pair Corralation between McEwen Mining and Pfeiffer Vacuum
Assuming the 90 days trading horizon McEwen Mining is expected to generate 6.27 times more return on investment than Pfeiffer Vacuum. However, McEwen Mining is 6.27 times more volatile than Pfeiffer Vacuum Technology. It trades about 0.04 of its potential returns per unit of risk. Pfeiffer Vacuum Technology is currently generating about -0.02 per unit of risk. If you would invest 525.00 in McEwen Mining on September 3, 2024 and sell it today you would earn a total of 310.00 from holding McEwen Mining or generate 59.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
McEwen Mining vs. Pfeiffer Vacuum Technology
Performance |
| Timeline |
| McEwen Mining |
| Pfeiffer Vacuum Tech |
McEwen Mining and Pfeiffer Vacuum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Pfeiffer Vacuum
The main advantage of trading using opposite McEwen Mining and Pfeiffer Vacuum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Pfeiffer Vacuum 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 Pfeiffer Vacuum will offset losses from the drop in Pfeiffer Vacuum's long position.| McEwen Mining vs. Evolution Gaming Group | McEwen Mining vs. Central Asia Metals | McEwen Mining vs. Blackrock World Mining | McEwen Mining vs. Hochschild Mining plc |
| Pfeiffer Vacuum vs. Catalyst Media Group | Pfeiffer Vacuum vs. CATLIN GROUP | Pfeiffer Vacuum vs. Magnora ASA | Pfeiffer Vacuum vs. RTW Venture Fund |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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