Correlation Between DXC Technology and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both DXC Technology 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 DXC Technology and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and MCEWEN MINING INC, you can compare the effects of market volatilities on DXC Technology 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 DXC Technology with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and MCEWEN MINING.
Diversification Opportunities for DXC Technology and MCEWEN MINING
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DXC and MCEWEN is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co 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 DXC Technology 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 DXC Technology Co 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 DXC Technology i.e., DXC Technology and MCEWEN MINING go up and down completely randomly.
Pair Corralation between DXC Technology and MCEWEN MINING
Assuming the 90 days trading horizon DXC Technology Co is expected to generate 0.6 times more return on investment than MCEWEN MINING. However, DXC Technology Co is 1.67 times less risky than MCEWEN MINING. It trades about 0.26 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.11 per unit of risk. If you would invest 1,919 in DXC Technology Co on November 3, 2024 and sell it today you would earn a total of 172.00 from holding DXC Technology Co or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
DXC Technology Co vs. MCEWEN MINING INC
Performance |
| Timeline |
| DXC Technology |
| MCEWEN MINING INC |
DXC Technology and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and MCEWEN MINING
The main advantage of trading using opposite DXC Technology and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology 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.| DXC Technology vs. SIVERS SEMICONDUCTORS AB | DXC Technology vs. NorAm Drilling AS | DXC Technology vs. Volkswagen AG | DXC Technology vs. Darden Restaurants |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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