Correlation Between McEwen Mining and Anglo Eastern
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Anglo Eastern 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 Anglo Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Anglo Eastern Plantations PLC, you can compare the effects of market volatilities on McEwen Mining and Anglo Eastern 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 Anglo Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Anglo Eastern.
Diversification Opportunities for McEwen Mining and Anglo Eastern
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between McEwen and Anglo is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Anglo Eastern Plantations PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Eastern Planta 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 Anglo Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Eastern Planta has no effect on the direction of McEwen Mining i.e., McEwen Mining and Anglo Eastern go up and down completely randomly.
Pair Corralation between McEwen Mining and Anglo Eastern
Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the Anglo Eastern. In addition to that, McEwen Mining is 2.16 times more volatile than Anglo Eastern Plantations PLC. It trades about 0.0 of its total potential returns per unit of risk. Anglo Eastern Plantations PLC is currently generating about 0.01 per unit of volatility. If you would invest 66,600 in Anglo Eastern Plantations PLC on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Anglo Eastern Plantations PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
McEwen Mining vs. Anglo Eastern Plantations PLC
Performance |
| Timeline |
| McEwen Mining |
| Anglo Eastern Planta |
McEwen Mining and Anglo Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Anglo Eastern
The main advantage of trading using opposite McEwen Mining and Anglo Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Anglo Eastern 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 Anglo Eastern will offset losses from the drop in Anglo Eastern's long position.| McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Hyundai Motor | McEwen Mining vs. Reliance Industries Ltd |
| Anglo Eastern vs. AMG Advanced Metallurgical | Anglo Eastern vs. Raytheon Technologies Corp | Anglo Eastern vs. Wheaton Precious Metals | Anglo Eastern vs. Made Tech Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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