Correlation Between H FARM and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both H FARM 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 H FARM and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H FARM SPA and MCEWEN MINING INC, you can compare the effects of market volatilities on H FARM 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 H FARM with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of H FARM and MCEWEN MINING.
Diversification Opportunities for H FARM and MCEWEN MINING
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 5JQ and MCEWEN is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding H FARM SPA 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 H FARM 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 H FARM SPA 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 H FARM i.e., H FARM and MCEWEN MINING go up and down completely randomly.
Pair Corralation between H FARM and MCEWEN MINING
Assuming the 90 days horizon H FARM SPA is expected to under-perform the MCEWEN MINING. In addition to that, H FARM is 1.46 times more volatile than MCEWEN MINING INC. It trades about -0.12 of its total potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.09 per unit of volatility. If you would invest 850.00 in MCEWEN MINING INC on September 4, 2024 and sell it today you would lose (65.00) from holding MCEWEN MINING INC or give up 7.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
H FARM SPA vs. MCEWEN MINING INC
Performance |
| Timeline |
| H FARM SPA |
| MCEWEN MINING INC |
H FARM and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H FARM and MCEWEN MINING
The main advantage of trading using opposite H FARM and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H FARM 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.| H FARM vs. Blackstone Group | H FARM vs. BlackRock | H FARM vs. The Bank of | H FARM vs. Ameriprise Financial |
| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
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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