Correlation Between McEwen Mining and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Eastinco Mining 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 Eastinco Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Eastinco Mining Exploration, you can compare the effects of market volatilities on McEwen Mining and Eastinco Mining 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 Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Eastinco Mining.
Diversification Opportunities for McEwen Mining and Eastinco Mining
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between McEwen and Eastinco is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Eastinco Mining Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastinco Mining Expl 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 Eastinco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastinco Mining Expl has no effect on the direction of McEwen Mining i.e., McEwen Mining and Eastinco Mining go up and down completely randomly.
Pair Corralation between McEwen Mining and Eastinco Mining
Assuming the 90 days trading horizon McEwen Mining is expected to generate 1.79 times less return on investment than Eastinco Mining. But when comparing it to its historical volatility, McEwen Mining is 1.33 times less risky than Eastinco Mining. It trades about 0.1 of its potential returns per unit of risk. Eastinco Mining Exploration is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 4,700 in Eastinco Mining Exploration on November 2, 2024 and sell it today you would earn a total of 400.00 from holding Eastinco Mining Exploration or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Eastinco Mining Exploration
Performance |
| Timeline |
| McEwen Mining |
| Eastinco Mining Expl |
McEwen Mining and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Eastinco Mining
The main advantage of trading using opposite McEwen Mining and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Eastinco Mining 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 Eastinco Mining will offset losses from the drop in Eastinco Mining's long position.| McEwen Mining vs. LBG Media PLC | McEwen Mining vs. Lindsell Train Investment | McEwen Mining vs. OneSavings Bank PLC | McEwen Mining vs. Monks Investment Trust |
| Eastinco Mining vs. Adriatic Metals | Eastinco Mining vs. MediaZest plc | Eastinco Mining vs. Rheinmetall AG | Eastinco Mining vs. Wheaton Precious 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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