Correlation Between Bet At and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Bet At and McEwen Mining 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 Bet At and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bet at home AG and McEwen Mining, you can compare the effects of market volatilities on Bet At and McEwen Mining 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 Bet At with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and McEwen Mining.
Diversification Opportunities for Bet At and McEwen Mining
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bet and McEwen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Bet At 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 bet at home AG are associated (or correlated) with McEwen Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McEwen Mining has no effect on the direction of Bet At i.e., Bet At and McEwen Mining go up and down completely randomly.
Pair Corralation between Bet At and McEwen Mining
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the McEwen Mining. But the stock apears to be less risky and, when comparing its historical volatility, bet at home AG is 1.91 times less risky than McEwen Mining. The stock trades about -0.04 of its potential returns per unit of risk. The McEwen Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 818.00 in McEwen Mining on September 24, 2024 and sell it today you would lose (7.00) from holding McEwen Mining or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
bet at home AG vs. McEwen Mining
Performance |
| Timeline |
| bet at home |
| McEwen Mining |
Bet At and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and McEwen Mining
The main advantage of trading using opposite Bet At and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, McEwen Mining 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 McEwen Mining will offset losses from the drop in McEwen Mining's long position.| Bet At vs. Southwest Airlines Co | Bet At vs. Roadside Real Estate | Bet At vs. Broadridge Financial Solutions | Bet At vs. Morgan Advanced Materials |
| McEwen Mining vs. Fortune Brands Home | McEwen Mining vs. alstria office REIT AG | McEwen Mining vs. bet at home AG | McEwen Mining vs. Zoom Video 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |