Correlation Between McEwen Mining and Eneraqua Technologies
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Eneraqua Technologies 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 Eneraqua Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Eneraqua Technologies PLC, you can compare the effects of market volatilities on McEwen Mining and Eneraqua Technologies 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 Eneraqua Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Eneraqua Technologies.
Diversification Opportunities for McEwen Mining and Eneraqua Technologies
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between McEwen and Eneraqua is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Eneraqua Technologies PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eneraqua Technologies PLC 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 Eneraqua Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eneraqua Technologies PLC has no effect on the direction of McEwen Mining i.e., McEwen Mining and Eneraqua Technologies go up and down completely randomly.
Pair Corralation between McEwen Mining and Eneraqua Technologies
Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the Eneraqua Technologies. In addition to that, McEwen Mining is 1.49 times more volatile than Eneraqua Technologies PLC. It trades about -0.15 of its total potential returns per unit of risk. Eneraqua Technologies PLC is currently generating about 0.17 per unit of volatility. If you would invest 4,000 in Eneraqua Technologies PLC on October 9, 2024 and sell it today you would earn a total of 200.00 from holding Eneraqua Technologies PLC or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
McEwen Mining vs. Eneraqua Technologies PLC
Performance |
| Timeline |
| McEwen Mining |
| Eneraqua Technologies PLC |
McEwen Mining and Eneraqua Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Eneraqua Technologies
The main advantage of trading using opposite McEwen Mining and Eneraqua Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Eneraqua Technologies 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 Eneraqua Technologies will offset losses from the drop in Eneraqua Technologies' long position.| McEwen Mining vs. Zoom Video Communications | McEwen Mining vs. Delta Air Lines | McEwen Mining vs. Advanced Medical Solutions | McEwen Mining vs. Gaming Realms plc |
| Eneraqua Technologies vs. Tyson Foods Cl | Eneraqua Technologies vs. Qurate Retail Series | Eneraqua Technologies vs. Ebro Foods | Eneraqua Technologies vs. Medical Properties Trust |
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.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |