Correlation Between McEwen Mining and NB Private
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and NB Private 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 NB Private into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and NB Private Equity, you can compare the effects of market volatilities on McEwen Mining and NB Private 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 NB Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and NB Private.
Diversification Opportunities for McEwen Mining and NB Private
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between McEwen and NBPE is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and NB Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NB Private Equity 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 NB Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NB Private Equity has no effect on the direction of McEwen Mining i.e., McEwen Mining and NB Private go up and down completely randomly.
Pair Corralation between McEwen Mining and NB Private
Assuming the 90 days trading horizon McEwen Mining is expected to generate 2.74 times more return on investment than NB Private. However, McEwen Mining is 2.74 times more volatile than NB Private Equity. It trades about 0.03 of its potential returns per unit of risk. NB Private Equity is currently generating about 0.03 per unit of risk. If you would invest 692.00 in McEwen Mining on September 12, 2024 and sell it today you would earn a total of 173.00 from holding McEwen Mining or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.95% |
| Values | Daily Returns |
McEwen Mining vs. NB Private Equity
Performance |
| Timeline |
| McEwen Mining |
| NB Private Equity |
McEwen Mining and NB Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and NB Private
The main advantage of trading using opposite McEwen Mining and NB Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, NB Private 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 NB Private will offset losses from the drop in NB Private's long position.| McEwen Mining vs. Impax Environmental Markets | McEwen Mining vs. Amedeo Air Four | McEwen Mining vs. Sealed Air Corp | McEwen Mining vs. Flow Traders NV |
| NB Private vs. GoldMining | NB Private vs. Beowulf Mining | NB Private vs. Endeavour Mining Corp | NB Private vs. Griffin 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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