Correlation Between MOBILE FACTORY and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both MOBILE FACTORY 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 MOBILE FACTORY and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOBILE FACTORY INC and MCEWEN MINING INC, you can compare the effects of market volatilities on MOBILE FACTORY 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 MOBILE FACTORY with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBILE FACTORY and MCEWEN MINING.
Diversification Opportunities for MOBILE FACTORY and MCEWEN MINING
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MOBILE and MCEWEN is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding MOBILE FACTORY INC 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 MOBILE FACTORY 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 MOBILE FACTORY INC 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 MOBILE FACTORY i.e., MOBILE FACTORY and MCEWEN MINING go up and down completely randomly.
Pair Corralation between MOBILE FACTORY and MCEWEN MINING
Assuming the 90 days horizon MOBILE FACTORY is expected to generate 1.29 times less return on investment than MCEWEN MINING. But when comparing it to its historical volatility, MOBILE FACTORY INC is 1.48 times less risky than MCEWEN MINING. It trades about 0.09 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 765.00 in MCEWEN MINING INC on October 27, 2024 and sell it today you would earn a total of 25.00 from holding MCEWEN MINING INC or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOBILE FACTORY INC vs. MCEWEN MINING INC
Performance |
| Timeline |
| MOBILE FACTORY INC |
| MCEWEN MINING INC |
MOBILE FACTORY and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOBILE FACTORY and MCEWEN MINING
The main advantage of trading using opposite MOBILE FACTORY and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBILE FACTORY 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.| MOBILE FACTORY vs. Strategic Education | MOBILE FACTORY vs. American Public Education | MOBILE FACTORY vs. DeVry Education Group | MOBILE FACTORY vs. ARDAGH METAL PACDL 0001 |
| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. Identiv | MCEWEN MINING vs. INTUITIVE SURGICAL |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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