Correlation Between GoldMining and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both GoldMining 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 GoldMining and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and McEwen Mining, you can compare the effects of market volatilities on GoldMining 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 GoldMining with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and McEwen Mining.
Diversification Opportunities for GoldMining and McEwen Mining
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GoldMining and McEwen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and GoldMining 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 GoldMining 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 GoldMining i.e., GoldMining and McEwen Mining go up and down completely randomly.
Pair Corralation between GoldMining and McEwen Mining
Assuming the 90 days trading horizon GoldMining is expected to generate 1.19 times more return on investment than McEwen Mining. However, GoldMining is 1.19 times more volatile than McEwen Mining. It trades about -0.12 of its potential returns per unit of risk. McEwen Mining is currently generating about -0.38 per unit of risk. If you would invest 131.00 in GoldMining on August 26, 2024 and sell it today you would lose (7.00) from holding GoldMining or give up 5.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 59.09% |
| Values | Daily Returns |
GoldMining vs. McEwen Mining
Performance |
| Timeline |
| GoldMining |
| McEwen Mining |
GoldMining and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and McEwen Mining
The main advantage of trading using opposite GoldMining and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining 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.| GoldMining vs. JB Hunt Transport | GoldMining vs. Veolia Environnement VE | GoldMining vs. Ironveld Plc | GoldMining vs. Schroders Investment Trusts |
| McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Hyundai Motor | McEwen Mining vs. Toyota Motor Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |