Correlation Between McEwen Mining and Markel Corp
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Markel Corp 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 Markel Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Markel Corp, you can compare the effects of market volatilities on McEwen Mining and Markel Corp 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 Markel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Markel Corp.
Diversification Opportunities for McEwen Mining and Markel Corp
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between McEwen and Markel is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Markel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markel Corp 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 Markel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markel Corp has no effect on the direction of McEwen Mining i.e., McEwen Mining and Markel Corp go up and down completely randomly.
Pair Corralation between McEwen Mining and Markel Corp
Assuming the 90 days trading horizon McEwen Mining is expected to generate 2.86 times more return on investment than Markel Corp. However, McEwen Mining is 2.86 times more volatile than Markel Corp. It trades about 0.05 of its potential returns per unit of risk. Markel Corp is currently generating about 0.08 per unit of risk. If you would invest 619.00 in McEwen Mining on October 22, 2024 and sell it today you would earn a total of 221.00 from holding McEwen Mining or generate 35.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Markel Corp
Performance |
| Timeline |
| McEwen Mining |
| Markel Corp |
McEwen Mining and Markel Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Markel Corp
The main advantage of trading using opposite McEwen Mining and Markel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Markel Corp 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 Markel Corp will offset losses from the drop in Markel Corp's long position.| McEwen Mining vs. BE Semiconductor Industries | McEwen Mining vs. mobilezone holding AG | McEwen Mining vs. Trainline Plc | McEwen Mining vs. Broadridge Financial Solutions |
| Markel Corp vs. Elmos Semiconductor SE | Markel Corp vs. EJF Investments | Markel Corp vs. Evolution Gaming Group | Markel Corp vs. Smithson Investment Trust |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |