Correlation Between McEwen Mining and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and GreenX Metals 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 GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and GreenX Metals, you can compare the effects of market volatilities on McEwen Mining and GreenX Metals 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 GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and GreenX Metals.
Diversification Opportunities for McEwen Mining and GreenX Metals
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between McEwen and GreenX is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals 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 GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of McEwen Mining i.e., McEwen Mining and GreenX Metals go up and down completely randomly.
Pair Corralation between McEwen Mining and GreenX Metals
Assuming the 90 days trading horizon McEwen Mining is expected to generate 1.15 times more return on investment than GreenX Metals. However, McEwen Mining is 1.15 times more volatile than GreenX Metals. It trades about 0.04 of its potential returns per unit of risk. GreenX Metals is currently generating about 0.02 per unit of risk. If you would invest 565.00 in McEwen Mining on August 30, 2024 and sell it today you would earn a total of 258.00 from holding McEwen Mining or generate 45.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
McEwen Mining vs. GreenX Metals
Performance |
| Timeline |
| McEwen Mining |
| GreenX Metals |
McEwen Mining and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and GreenX Metals
The main advantage of trading using opposite McEwen Mining and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, GreenX Metals 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| McEwen Mining vs. Lendinvest PLC | McEwen Mining vs. Neometals | McEwen Mining vs. Albion Technology General | McEwen Mining vs. Jupiter Fund Management |
| GreenX Metals vs. Vitec Software Group | GreenX Metals vs. Allianz Technology Trust | GreenX Metals vs. Spotify Technology SA | GreenX Metals vs. Microchip Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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