Correlation Between McEwen Mining and Bioventix
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Bioventix 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 Bioventix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Bioventix, you can compare the effects of market volatilities on McEwen Mining and Bioventix 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 Bioventix. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Bioventix.
Diversification Opportunities for McEwen Mining and Bioventix
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between McEwen and Bioventix is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Bioventix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioventix 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 Bioventix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioventix has no effect on the direction of McEwen Mining i.e., McEwen Mining and Bioventix go up and down completely randomly.
Pair Corralation between McEwen Mining and Bioventix
Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the Bioventix. In addition to that, McEwen Mining is 1.25 times more volatile than Bioventix. It trades about -0.28 of its total potential returns per unit of risk. Bioventix is currently generating about 0.11 per unit of volatility. If you would invest 356,475 in Bioventix on September 1, 2024 and sell it today you would earn a total of 13,525 from holding Bioventix or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Bioventix
Performance |
| Timeline |
| McEwen Mining |
| Bioventix |
McEwen Mining and Bioventix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Bioventix
The main advantage of trading using opposite McEwen Mining and Bioventix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Bioventix 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 Bioventix will offset losses from the drop in Bioventix'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 |
| Bioventix vs. McEwen Mining | Bioventix vs. Roebuck Food Group | Bioventix vs. Tyson Foods Cl | Bioventix vs. Grieg Seafood |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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