Correlation Between McEwen Mining and National Atomic
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and National Atomic 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 National Atomic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and National Atomic Co, you can compare the effects of market volatilities on McEwen Mining and National Atomic 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 National Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and National Atomic.
Diversification Opportunities for McEwen Mining and National Atomic
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between McEwen and National is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and National Atomic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Atomic 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 National Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Atomic has no effect on the direction of McEwen Mining i.e., McEwen Mining and National Atomic go up and down completely randomly.
Pair Corralation between McEwen Mining and National Atomic
Assuming the 90 days trading horizon McEwen Mining is expected to generate 1.55 times more return on investment than National Atomic. However, McEwen Mining is 1.55 times more volatile than National Atomic Co. It trades about 0.04 of its potential returns per unit of risk. National Atomic Co is currently generating about 0.05 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 | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
McEwen Mining vs. National Atomic Co
Performance |
| Timeline |
| McEwen Mining |
| National Atomic |
McEwen Mining and National Atomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and National Atomic
The main advantage of trading using opposite McEwen Mining and National Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, National Atomic 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 National Atomic will offset losses from the drop in National Atomic's long position.| McEwen Mining vs. Lendinvest PLC | McEwen Mining vs. Neometals | McEwen Mining vs. Albion Technology General | McEwen Mining vs. Jupiter Fund Management |
| National Atomic vs. Lendinvest PLC | National Atomic vs. Neometals | National Atomic vs. Coor Service Management | National Atomic vs. Albion Technology General |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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