Correlation Between McEwen Mining and Compal Electronics
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Compal Electronics 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 Compal Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Compal Electronics GDR, you can compare the effects of market volatilities on McEwen Mining and Compal Electronics 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 Compal Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Compal Electronics.
Diversification Opportunities for McEwen Mining and Compal Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between McEwen and Compal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Compal Electronics GDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compal Electronics GDR 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 Compal Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compal Electronics GDR has no effect on the direction of McEwen Mining i.e., McEwen Mining and Compal Electronics go up and down completely randomly.
Pair Corralation between McEwen Mining and Compal Electronics
If you would invest 796.00 in McEwen Mining on November 29, 2024 and sell it today you would earn a total of 39.00 from holding McEwen Mining or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.73% |
| Values | Daily Returns |
McEwen Mining vs. Compal Electronics GDR
Performance |
| Timeline |
| McEwen Mining |
Risk-Adjusted Performance
Weak
Weak | Strong |
| Compal Electronics GDR |
McEwen Mining and Compal Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Compal Electronics
The main advantage of trading using opposite McEwen Mining and Compal Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Compal Electronics 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 Compal Electronics will offset losses from the drop in Compal Electronics' long position.| McEwen Mining vs. Travel Leisure Co | McEwen Mining vs. MyHealthChecked Plc | McEwen Mining vs. Bellevue Healthcare Trust | McEwen Mining vs. Universal Display Corp |
| Compal Electronics vs. Spirent Communications plc | Compal Electronics vs. Spotify Technology SA | Compal Electronics vs. Sartorius Stedim Biotech | Compal Electronics vs. Zegona Communications Plc |
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 Stocks Directory module to find actively traded stocks across global markets.
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