Correlation Between Santacruz Silver and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Santacruz Silver 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 Santacruz Silver and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santacruz Silver Mining and MCEWEN MINING INC, you can compare the effects of market volatilities on Santacruz Silver 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 Santacruz Silver with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santacruz Silver and MCEWEN MINING.
Diversification Opportunities for Santacruz Silver and MCEWEN MINING
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Santacruz and MCEWEN is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Santacruz Silver Mining and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC and Santacruz Silver 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 Santacruz Silver Mining 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 INC has no effect on the direction of Santacruz Silver i.e., Santacruz Silver and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Santacruz Silver and MCEWEN MINING
Assuming the 90 days horizon Santacruz Silver Mining is expected to generate 2.45 times more return on investment than MCEWEN MINING. However, Santacruz Silver is 2.45 times more volatile than MCEWEN MINING INC. It trades about 0.07 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.06 per unit of risk. If you would invest 18.00 in Santacruz Silver Mining on September 22, 2024 and sell it today you would earn a total of 1.00 from holding Santacruz Silver Mining or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santacruz Silver Mining vs. MCEWEN MINING INC
Performance |
| Timeline |
| Santacruz Silver Mining |
| MCEWEN MINING INC |
Santacruz Silver and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santacruz Silver and MCEWEN MINING
The main advantage of trading using opposite Santacruz Silver and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santacruz Silver 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.| Santacruz Silver vs. MCEWEN MINING INC | Santacruz Silver vs. ADRIATIC METALS LS 013355 | Santacruz Silver vs. KENNAMETAL INC | Santacruz Silver vs. AAC TECHNOLOGHLDGADR |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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