Correlation Between McEwen Mining and Quadrise Plc
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Quadrise Plc 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 Quadrise Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Quadrise Plc, you can compare the effects of market volatilities on McEwen Mining and Quadrise Plc 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 Quadrise Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Quadrise Plc.
Diversification Opportunities for McEwen Mining and Quadrise Plc
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between McEwen and Quadrise is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Quadrise Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quadrise 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 Quadrise Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quadrise Plc has no effect on the direction of McEwen Mining i.e., McEwen Mining and Quadrise Plc go up and down completely randomly.
Pair Corralation between McEwen Mining and Quadrise Plc
Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the Quadrise Plc. But the stock apears to be less risky and, when comparing its historical volatility, McEwen Mining is 5.51 times less risky than Quadrise Plc. The stock trades about -0.41 of its potential returns per unit of risk. The Quadrise Plc is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 164.00 in Quadrise Plc on August 28, 2024 and sell it today you would earn a total of 191.00 from holding Quadrise Plc or generate 116.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Quadrise Plc
Performance |
| Timeline |
| McEwen Mining |
| Quadrise Plc |
McEwen Mining and Quadrise Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Quadrise Plc
The main advantage of trading using opposite McEwen Mining and Quadrise Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Quadrise Plc 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 Quadrise Plc will offset losses from the drop in Quadrise Plc's long position.| McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Hyundai Motor | McEwen Mining vs. Toyota Motor Corp |
| Quadrise Plc vs. New Residential Investment | Quadrise Plc vs. Kinnevik Investment AB | Quadrise Plc vs. Europa Metals | Quadrise Plc vs. Herald Investment Trust |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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