Correlation Between McEwen Mining and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Samsung Electronics 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 Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Samsung Electronics Co, you can compare the effects of market volatilities on McEwen Mining and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Samsung Electronics.
Diversification Opportunities for McEwen Mining and Samsung Electronics
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between McEwen and Samsung is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of McEwen Mining i.e., McEwen Mining and Samsung Electronics go up and down completely randomly.
Pair Corralation between McEwen Mining and Samsung Electronics
Assuming the 90 days trading horizon McEwen Mining is expected to generate 2.03 times more return on investment than Samsung Electronics. However, McEwen Mining is 2.03 times more volatile than Samsung Electronics Co. It trades about 0.04 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.0 per unit of risk. If you would invest 563.00 in McEwen Mining on August 24, 2024 and sell it today you would earn a total of 279.00 from holding McEwen Mining or generate 49.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
McEwen Mining vs. Samsung Electronics Co
Performance |
| Timeline |
| McEwen Mining |
| Samsung Electronics |
McEwen Mining and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Samsung Electronics
The main advantage of trading using opposite McEwen Mining and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| McEwen Mining vs. Quadrise Plc | McEwen Mining vs. Intuitive Investments Group | McEwen Mining vs. European Metals Holdings | McEwen Mining vs. Athelney Trust plc |
| Samsung Electronics vs. Lundin Mining Corp | Samsung Electronics vs. Odfjell Drilling | Samsung Electronics vs. McEwen Mining | Samsung Electronics vs. Verizon Communications |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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