Correlation Between McEwen Mining and Investment
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Investment 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 Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and The Investment, you can compare the effects of market volatilities on McEwen Mining and Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Investment.
Diversification Opportunities for McEwen Mining and Investment
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between McEwen and Investment is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and The Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment has no effect on the direction of McEwen Mining i.e., McEwen Mining and Investment go up and down completely randomly.
Pair Corralation between McEwen Mining and Investment
Assuming the 90 days trading horizon McEwen Mining is expected to generate 3.79 times more return on investment than Investment. However, McEwen Mining is 3.79 times more volatile than The Investment. It trades about 0.04 of its potential returns per unit of risk. The Investment is currently generating about 0.07 per unit of risk. If you would invest 615.00 in McEwen Mining on September 13, 2024 and sell it today you would earn a total of 288.00 from holding McEwen Mining or generate 46.83% 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. The Investment
Performance |
| Timeline |
| McEwen Mining |
| Investment |
McEwen Mining and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Investment
The main advantage of trading using opposite McEwen Mining and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment'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 |
| Investment vs. Panther Metals PLC | Investment vs. Catena Media PLC | Investment vs. Zinc Media Group | Investment 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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