Correlation Between McEwen Mining and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Jupiter Fund 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 Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Jupiter Fund Management, you can compare the effects of market volatilities on McEwen Mining and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Jupiter Fund.
Diversification Opportunities for McEwen Mining and Jupiter Fund
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between McEwen and Jupiter is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of McEwen Mining i.e., McEwen Mining and Jupiter Fund go up and down completely randomly.
Pair Corralation between McEwen Mining and Jupiter Fund
Assuming the 90 days trading horizon McEwen Mining is expected to generate 1.59 times more return on investment than Jupiter Fund. However, McEwen Mining is 1.59 times more volatile than Jupiter Fund Management. It trades about 0.04 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.01 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. Jupiter Fund Management
Performance |
| Timeline |
| McEwen Mining |
| Jupiter Fund Management |
McEwen Mining and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Jupiter Fund
The main advantage of trading using opposite McEwen Mining and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| McEwen Mining vs. Lendinvest PLC | McEwen Mining vs. Neometals | McEwen Mining vs. Albion Technology General | McEwen Mining vs. Jupiter Fund Management |
| Jupiter Fund vs. Toyota Motor Corp | Jupiter Fund vs. Lendinvest PLC | Jupiter Fund vs. Neometals | Jupiter Fund vs. Coor Service Management |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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