Correlation Between McEwen Mining and Fonix Mobile
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Fonix Mobile 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 Fonix Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Fonix Mobile plc, you can compare the effects of market volatilities on McEwen Mining and Fonix Mobile 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 Fonix Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Fonix Mobile.
Diversification Opportunities for McEwen Mining and Fonix Mobile
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between McEwen and Fonix is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Fonix Mobile plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonix Mobile 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 Fonix Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonix Mobile plc has no effect on the direction of McEwen Mining i.e., McEwen Mining and Fonix Mobile go up and down completely randomly.
Pair Corralation between McEwen Mining and Fonix Mobile
Assuming the 90 days trading horizon McEwen Mining is expected to generate 1.24 times more return on investment than Fonix Mobile. However, McEwen Mining is 1.24 times more volatile than Fonix Mobile plc. It trades about -0.2 of its potential returns per unit of risk. Fonix Mobile plc is currently generating about -0.33 per unit of risk. If you would invest 911.00 in McEwen Mining on September 3, 2024 and sell it today you would lose (76.00) from holding McEwen Mining or give up 8.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Fonix Mobile plc
Performance |
| Timeline |
| McEwen Mining |
| Fonix Mobile plc |
McEwen Mining and Fonix Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Fonix Mobile
The main advantage of trading using opposite McEwen Mining and Fonix Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Fonix Mobile 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 Fonix Mobile will offset losses from the drop in Fonix Mobile's long position.| McEwen Mining vs. Evolution Gaming Group | McEwen Mining vs. Central Asia Metals | McEwen Mining vs. Blackrock World Mining | McEwen Mining vs. Hochschild Mining plc |
| Fonix Mobile vs. Samsung Electronics Co | Fonix Mobile vs. Samsung Electronics Co | Fonix Mobile vs. Hyundai Motor | Fonix Mobile vs. Toyota Motor 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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