Correlation Between McEwen Mining and Induction Healthcare
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Induction Healthcare 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 Induction Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Induction Healthcare Group, you can compare the effects of market volatilities on McEwen Mining and Induction Healthcare 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 Induction Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Induction Healthcare.
Diversification Opportunities for McEwen Mining and Induction Healthcare
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between McEwen and Induction is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Induction Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Induction Healthcare 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 Induction Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Induction Healthcare has no effect on the direction of McEwen Mining i.e., McEwen Mining and Induction Healthcare go up and down completely randomly.
Pair Corralation between McEwen Mining and Induction Healthcare
Assuming the 90 days trading horizon McEwen Mining is expected to generate 0.93 times more return on investment than Induction Healthcare. However, McEwen Mining is 1.07 times less risky than Induction Healthcare. It trades about 0.04 of its potential returns per unit of risk. Induction Healthcare Group is currently generating about -0.07 per unit of risk. If you would invest 716.00 in McEwen Mining on October 29, 2024 and sell it today you would earn a total of 134.00 from holding McEwen Mining or generate 18.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.81% |
| Values | Daily Returns |
McEwen Mining vs. Induction Healthcare Group
Performance |
| Timeline |
| McEwen Mining |
| Induction Healthcare |
McEwen Mining and Induction Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Induction Healthcare
The main advantage of trading using opposite McEwen Mining and Induction Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Induction Healthcare 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 Induction Healthcare will offset losses from the drop in Induction Healthcare's long position.| McEwen Mining vs. St Galler Kantonalbank | McEwen Mining vs. Ameriprise Financial | McEwen Mining vs. Manulife Financial Corp | McEwen Mining vs. Porvair plc |
| Induction Healthcare vs. American Homes 4 | Induction Healthcare vs. Bloomsbury Publishing Plc | Induction Healthcare vs. Ashtead Technology Holdings | Induction Healthcare vs. Fortune Brands Home |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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