Correlation Between MOVIE GAMES and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES 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 MOVIE GAMES and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and MCEWEN MINING INC, you can compare the effects of market volatilities on MOVIE GAMES 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 MOVIE GAMES with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and MCEWEN MINING.
Diversification Opportunities for MOVIE GAMES and MCEWEN MINING
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MOVIE and MCEWEN is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA 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 MOVIE GAMES 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 MOVIE GAMES SA 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 MOVIE GAMES i.e., MOVIE GAMES and MCEWEN MINING go up and down completely randomly.
Pair Corralation between MOVIE GAMES and MCEWEN MINING
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 1.57 times more return on investment than MCEWEN MINING. However, MOVIE GAMES is 1.57 times more volatile than MCEWEN MINING INC. It trades about 0.11 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.01 per unit of risk. If you would invest 357.00 in MOVIE GAMES SA on October 30, 2024 and sell it today you would earn a total of 65.00 from holding MOVIE GAMES SA or generate 18.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOVIE GAMES SA vs. MCEWEN MINING INC
Performance |
| Timeline |
| MOVIE GAMES SA |
| MCEWEN MINING INC |
MOVIE GAMES and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and MCEWEN MINING
The main advantage of trading using opposite MOVIE GAMES and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES 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.| MOVIE GAMES vs. TOMBADOR IRON LTD | MOVIE GAMES vs. Ultra Clean Holdings | MOVIE GAMES vs. Cleanaway Waste Management | MOVIE GAMES vs. Khiron Life Sciences |
| MCEWEN MINING vs. CAL MAINE FOODS | MCEWEN MINING vs. RYANAIR HLDGS ADR | MCEWEN MINING vs. United Natural Foods | MCEWEN MINING vs. PREMIER FOODS |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |