Correlation Between McEwen Mining and Hilton Food
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Hilton Food 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 Hilton Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Hilton Food Group, you can compare the effects of market volatilities on McEwen Mining and Hilton Food 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 Hilton Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Hilton Food.
Diversification Opportunities for McEwen Mining and Hilton Food
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between McEwen and Hilton is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Hilton Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Food Group 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 Hilton Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Food Group has no effect on the direction of McEwen Mining i.e., McEwen Mining and Hilton Food go up and down completely randomly.
Pair Corralation between McEwen Mining and Hilton Food
Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the Hilton Food. In addition to that, McEwen Mining is 1.77 times more volatile than Hilton Food Group. It trades about -0.4 of its total potential returns per unit of risk. Hilton Food Group is currently generating about 0.03 per unit of volatility. If you would invest 90,440 in Hilton Food Group on August 31, 2024 and sell it today you would earn a total of 760.00 from holding Hilton Food Group or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Hilton Food Group
Performance |
| Timeline |
| McEwen Mining |
| Hilton Food Group |
McEwen Mining and Hilton Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Hilton Food
The main advantage of trading using opposite McEwen Mining and Hilton Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Hilton Food 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 Hilton Food will offset losses from the drop in Hilton Food's long position.| McEwen Mining vs. Datalogic | McEwen Mining vs. Federal Realty Investment | McEwen Mining vs. Bankers Investment Trust | McEwen Mining vs. Automatic Data Processing |
| Hilton Food vs. Impax Environmental Markets | Hilton Food vs. Veolia Environnement VE | Hilton Food vs. United States Steel | Hilton Food vs. Ecclesiastical Insurance Office |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |