Correlation Between McEwen Mining and Mulberry Group
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Mulberry Group 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 Mulberry Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Mulberry Group PLC, you can compare the effects of market volatilities on McEwen Mining and Mulberry Group 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 Mulberry Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Mulberry Group.
Diversification Opportunities for McEwen Mining and Mulberry Group
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between McEwen and Mulberry is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Mulberry Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mulberry Group PLC 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 Mulberry Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mulberry Group PLC has no effect on the direction of McEwen Mining i.e., McEwen Mining and Mulberry Group go up and down completely randomly.
Pair Corralation between McEwen Mining and Mulberry Group
Assuming the 90 days trading horizon McEwen Mining is expected to generate 1.66 times more return on investment than Mulberry Group. However, McEwen Mining is 1.66 times more volatile than Mulberry Group PLC. It trades about 0.12 of its potential returns per unit of risk. Mulberry Group PLC is currently generating about -0.33 per unit of risk. If you would invest 801.00 in McEwen Mining on October 21, 2024 and sell it today you would earn a total of 39.00 from holding McEwen Mining or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
McEwen Mining vs. Mulberry Group PLC
Performance |
| Timeline |
| McEwen Mining |
| Mulberry Group PLC |
McEwen Mining and Mulberry Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Mulberry Group
The main advantage of trading using opposite McEwen Mining and Mulberry Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Mulberry Group 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 Mulberry Group will offset losses from the drop in Mulberry Group's long position.| McEwen Mining vs. Europa Metals | McEwen Mining vs. Micron Technology | McEwen Mining vs. Allianz Technology Trust | McEwen Mining vs. Jacquet Metal Service |
| Mulberry Group vs. Hochschild Mining plc | Mulberry Group vs. McEwen Mining | Mulberry Group vs. Thor Mining PLC | Mulberry Group vs. Zegona Communications Plc |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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