Correlation Between McEwen Mining and Ignitis Grupe
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Ignitis Grupe 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 Ignitis Grupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Ignitis Grupe AB, you can compare the effects of market volatilities on McEwen Mining and Ignitis Grupe 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 Ignitis Grupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Ignitis Grupe.
Diversification Opportunities for McEwen Mining and Ignitis Grupe
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between McEwen and Ignitis is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Ignitis Grupe AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ignitis Grupe AB 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 Ignitis Grupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ignitis Grupe AB has no effect on the direction of McEwen Mining i.e., McEwen Mining and Ignitis Grupe go up and down completely randomly.
Pair Corralation between McEwen Mining and Ignitis Grupe
Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the Ignitis Grupe. In addition to that, McEwen Mining is 2.01 times more volatile than Ignitis Grupe AB. It trades about -0.04 of its total potential returns per unit of risk. Ignitis Grupe AB is currently generating about 0.05 per unit of volatility. If you would invest 1,794 in Ignitis Grupe AB on September 12, 2024 and sell it today you would earn a total of 66.00 from holding Ignitis Grupe AB or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.63% |
| Values | Daily Returns |
McEwen Mining vs. Ignitis Grupe AB
Performance |
| Timeline |
| McEwen Mining |
| Ignitis Grupe AB |
McEwen Mining and Ignitis Grupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Ignitis Grupe
The main advantage of trading using opposite McEwen Mining and Ignitis Grupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Ignitis Grupe 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 Ignitis Grupe will offset losses from the drop in Ignitis Grupe's long position.| McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Hyundai Motor | McEwen Mining vs. Reliance Industries Ltd |
| Ignitis Grupe vs. Bisichi Mining PLC | Ignitis Grupe vs. Empire Metals Limited | Ignitis Grupe vs. Central Asia Metals | Ignitis Grupe vs. McEwen Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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