Correlation Between McEwen Mining and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Jacquet Metal 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 Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Jacquet Metal Service, you can compare the effects of market volatilities on McEwen Mining and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Jacquet Metal.
Diversification Opportunities for McEwen Mining and Jacquet Metal
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between McEwen and Jacquet is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of McEwen Mining i.e., McEwen Mining and Jacquet Metal go up and down completely randomly.
Pair Corralation between McEwen Mining and Jacquet Metal
Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the Jacquet Metal. In addition to that, McEwen Mining is 1.8 times more volatile than Jacquet Metal Service. It trades about -0.07 of its total potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.04 per unit of volatility. If you would invest 1,760 in Jacquet Metal Service on September 1, 2024 and sell it today you would lose (160.00) from holding Jacquet Metal Service or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
McEwen Mining vs. Jacquet Metal Service
Performance |
| Timeline |
| McEwen Mining |
| Jacquet Metal Service |
McEwen Mining and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Jacquet Metal
The main advantage of trading using opposite McEwen Mining and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| McEwen Mining vs. Pfeiffer Vacuum Technology | McEwen Mining vs. Spotify Technology SA | McEwen Mining vs. Check Point Software | McEwen Mining vs. Albion Technology General |
| Jacquet Metal vs. Uniper SE | Jacquet Metal vs. Mulberry Group PLC | Jacquet Metal vs. London Security Plc | Jacquet Metal vs. Triad Group 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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