Correlation Between McEwen Mining and Axis Bank
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Axis Bank 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 Axis Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Axis Bank Ltd, you can compare the effects of market volatilities on McEwen Mining and Axis Bank 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 Axis Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Axis Bank.
Diversification Opportunities for McEwen Mining and Axis Bank
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between McEwen and Axis is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Axis Bank Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axis Bank 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 Axis Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axis Bank has no effect on the direction of McEwen Mining i.e., McEwen Mining and Axis Bank go up and down completely randomly.
Pair Corralation between McEwen Mining and Axis Bank
Assuming the 90 days trading horizon McEwen Mining is expected to generate 3.07 times more return on investment than Axis Bank. However, McEwen Mining is 3.07 times more volatile than Axis Bank Ltd. It trades about 0.13 of its potential returns per unit of risk. Axis Bank Ltd is currently generating about -0.06 per unit of risk. If you would invest 829.00 in McEwen Mining on September 12, 2024 and sell it today you would earn a total of 74.00 from holding McEwen Mining or generate 8.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
McEwen Mining vs. Axis Bank Ltd
Performance |
| Timeline |
| McEwen Mining |
| Axis Bank |
McEwen Mining and Axis Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Axis Bank
The main advantage of trading using opposite McEwen Mining and Axis Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Axis Bank 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 Axis Bank will offset losses from the drop in Axis Bank's long position.| McEwen Mining vs. Impax Environmental Markets | McEwen Mining vs. Amedeo Air Four | McEwen Mining vs. Sealed Air Corp | McEwen Mining vs. Flow Traders NV |
| Axis Bank vs. Silvercorp Metals | Axis Bank vs. Wheaton Precious Metals | Axis Bank vs. Air Products Chemicals | Axis Bank vs. Endeavour Mining Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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