Correlation Between McEwen Mining and Anglesey Mining
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Anglesey 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 Anglesey 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 Anglesey Mining, you can compare the effects of market volatilities on McEwen Mining and Anglesey 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 Anglesey Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Anglesey Mining.
Diversification Opportunities for McEwen Mining and Anglesey Mining
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between McEwen and Anglesey is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Anglesey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey Mining 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 Anglesey Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglesey Mining has no effect on the direction of McEwen Mining i.e., McEwen Mining and Anglesey Mining go up and down completely randomly.
Pair Corralation between McEwen Mining and Anglesey Mining
Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the Anglesey Mining. In addition to that, McEwen Mining is 1.05 times more volatile than Anglesey Mining. It trades about -0.34 of its total potential returns per unit of risk. Anglesey Mining is currently generating about -0.32 per unit of volatility. If you would invest 105.00 in Anglesey Mining on August 27, 2024 and sell it today you would lose (17.00) from holding Anglesey Mining or give up 16.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Anglesey Mining
Performance |
| Timeline |
| McEwen Mining |
| Anglesey Mining |
McEwen Mining and Anglesey Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Anglesey Mining
The main advantage of trading using opposite McEwen Mining and Anglesey Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Anglesey 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 Anglesey Mining will offset losses from the drop in Anglesey Mining's long position.| McEwen Mining vs. Naturhouse Health SA | McEwen Mining vs. Neometals | McEwen Mining vs. Universal Music Group | McEwen Mining vs. Cardinal Health |
| Anglesey Mining vs. Givaudan SA | Anglesey Mining vs. Antofagasta PLC | Anglesey Mining vs. Centamin PLC | Anglesey Mining vs. Atalaya Mining |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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