Correlation Between McEwen Mining and Comerica
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Comerica 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 Comerica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Comerica, you can compare the effects of market volatilities on McEwen Mining and Comerica 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 Comerica. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Comerica.
Diversification Opportunities for McEwen Mining and Comerica
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between McEwen and Comerica is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Comerica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comerica 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 Comerica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comerica has no effect on the direction of McEwen Mining i.e., McEwen Mining and Comerica go up and down completely randomly.
Pair Corralation between McEwen Mining and Comerica
Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the Comerica. But the stock apears to be less risky and, when comparing its historical volatility, McEwen Mining is 1.03 times less risky than Comerica. The stock trades about -0.44 of its potential returns per unit of risk. The Comerica is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 6,287 in Comerica on August 30, 2024 and sell it today you would earn a total of 949.00 from holding Comerica or generate 15.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
McEwen Mining vs. Comerica
Performance |
| Timeline |
| McEwen Mining |
| Comerica |
McEwen Mining and Comerica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Comerica
The main advantage of trading using opposite McEwen Mining and Comerica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Comerica 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 Comerica will offset losses from the drop in Comerica's long position.| McEwen Mining vs. Tungsten West PLC | McEwen Mining vs. Argo Group Limited | McEwen Mining vs. Hardide PLC | McEwen Mining vs. Versarien PLC |
| Comerica vs. McEwen Mining | Comerica vs. Take Two Interactive Software | Comerica vs. Southern Copper Corp | Comerica vs. Cornish Metals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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