Correlation Between McEwen Mining and MTI Wireless
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and MTI Wireless 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 MTI Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and MTI Wireless Edge, you can compare the effects of market volatilities on McEwen Mining and MTI Wireless 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 MTI Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and MTI Wireless.
Diversification Opportunities for McEwen Mining and MTI Wireless
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between McEwen and MTI is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and MTI Wireless Edge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTI Wireless Edge 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 MTI Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTI Wireless Edge has no effect on the direction of McEwen Mining i.e., McEwen Mining and MTI Wireless go up and down completely randomly.
Pair Corralation between McEwen Mining and MTI Wireless
Assuming the 90 days trading horizon McEwen Mining is expected to generate 1.56 times more return on investment than MTI Wireless. However, McEwen Mining is 1.56 times more volatile than MTI Wireless Edge. It trades about 0.02 of its potential returns per unit of risk. MTI Wireless Edge is currently generating about 0.01 per unit of risk. If you would invest 797.00 in McEwen Mining on August 31, 2024 and sell it today you would earn a total of 38.00 from holding McEwen Mining or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.69% |
| Values | Daily Returns |
McEwen Mining vs. MTI Wireless Edge
Performance |
| Timeline |
| McEwen Mining |
| MTI Wireless Edge |
McEwen Mining and MTI Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and MTI Wireless
The main advantage of trading using opposite McEwen Mining and MTI Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, MTI Wireless 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 MTI Wireless will offset losses from the drop in MTI Wireless' long position.| McEwen Mining vs. Datalogic | McEwen Mining vs. Federal Realty Investment | McEwen Mining vs. Bankers Investment Trust | McEwen Mining vs. Automatic Data Processing |
| MTI Wireless vs. European Metals Holdings | MTI Wireless vs. Panther Metals PLC | MTI Wireless vs. Power Metal Resources | MTI Wireless vs. Charter Communications Cl |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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