Correlation Between McEwen Mining and Tyson Foods
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Tyson Foods 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 Tyson Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Tyson Foods Cl, you can compare the effects of market volatilities on McEwen Mining and Tyson Foods 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 Tyson Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Tyson Foods.
Diversification Opportunities for McEwen Mining and Tyson Foods
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between McEwen and Tyson is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Tyson Foods Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tyson Foods Cl 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 Tyson Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tyson Foods Cl has no effect on the direction of McEwen Mining i.e., McEwen Mining and Tyson Foods go up and down completely randomly.
Pair Corralation between McEwen Mining and Tyson Foods
Assuming the 90 days trading horizon McEwen Mining is expected to generate 4.71 times more return on investment than Tyson Foods. However, McEwen Mining is 4.71 times more volatile than Tyson Foods Cl. It trades about 0.01 of its potential returns per unit of risk. Tyson Foods Cl is currently generating about -0.49 per unit of risk. If you would invest 818.00 in McEwen Mining on September 24, 2024 and sell it today you would lose (7.00) from holding McEwen Mining or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Tyson Foods Cl
Performance |
| Timeline |
| McEwen Mining |
| Tyson Foods Cl |
McEwen Mining and Tyson Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Tyson Foods
The main advantage of trading using opposite McEwen Mining and Tyson Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Tyson Foods 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 Tyson Foods will offset losses from the drop in Tyson Foods' long position.| McEwen Mining vs. Fortune Brands Home | McEwen Mining vs. alstria office REIT AG | McEwen Mining vs. bet at home AG | McEwen Mining vs. Zoom Video Communications |
| Tyson Foods vs. Panther Metals PLC | Tyson Foods vs. GreenX Metals | Tyson Foods vs. McEwen Mining | Tyson Foods vs. Mindflair 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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