Correlation Between McEwen Mining and Tatton Asset
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Tatton Asset 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 Tatton Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Tatton Asset Management, you can compare the effects of market volatilities on McEwen Mining and Tatton Asset 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 Tatton Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Tatton Asset.
Diversification Opportunities for McEwen Mining and Tatton Asset
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between McEwen and Tatton is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Tatton Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tatton Asset Management 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 Tatton Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tatton Asset Management has no effect on the direction of McEwen Mining i.e., McEwen Mining and Tatton Asset go up and down completely randomly.
Pair Corralation between McEwen Mining and Tatton Asset
Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the Tatton Asset. In addition to that, McEwen Mining is 1.63 times more volatile than Tatton Asset Management. It trades about -0.28 of its total potential returns per unit of risk. Tatton Asset Management is currently generating about 0.12 per unit of volatility. If you would invest 67,277 in Tatton Asset Management on September 1, 2024 and sell it today you would earn a total of 2,123 from holding Tatton Asset Management or generate 3.16% 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. Tatton Asset Management
Performance |
| Timeline |
| McEwen Mining |
| Tatton Asset Management |
McEwen Mining and Tatton Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Tatton Asset
The main advantage of trading using opposite McEwen Mining and Tatton Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Tatton Asset 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 Tatton Asset will offset losses from the drop in Tatton Asset's long position.| McEwen Mining vs. Pfeiffer Vacuum Technology | McEwen Mining vs. Spotify Technology SA | McEwen Mining vs. Check Point Software | McEwen Mining vs. Albion Technology General |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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