Correlation Between McEwen Mining and Allianz Technology
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Allianz Technology 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 Allianz Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Allianz Technology Trust, you can compare the effects of market volatilities on McEwen Mining and Allianz Technology 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 Allianz Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Allianz Technology.
Diversification Opportunities for McEwen Mining and Allianz Technology
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between McEwen and Allianz is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Allianz Technology Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz Technology Trust 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 Allianz Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz Technology Trust has no effect on the direction of McEwen Mining i.e., McEwen Mining and Allianz Technology go up and down completely randomly.
Pair Corralation between McEwen Mining and Allianz Technology
Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the Allianz Technology. In addition to that, McEwen Mining is 1.31 times more volatile than Allianz Technology Trust. It trades about -0.28 of its total potential returns per unit of risk. Allianz Technology Trust is currently generating about 0.27 per unit of volatility. If you would invest 36,400 in Allianz Technology Trust on September 1, 2024 and sell it today you would earn a total of 3,350 from holding Allianz Technology Trust or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Allianz Technology Trust
Performance |
| Timeline |
| McEwen Mining |
| Allianz Technology Trust |
McEwen Mining and Allianz Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Allianz Technology
The main advantage of trading using opposite McEwen Mining and Allianz Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Allianz Technology 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 Allianz Technology will offset losses from the drop in Allianz Technology'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 |
| Allianz Technology vs. Games Workshop Group | Allianz Technology vs. Auto Trader Group | Allianz Technology vs. SANTANDER UK 10 | Allianz Technology vs. Coor Service Management |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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