Correlation Between Zoom Video and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Zoom Video 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 Zoom Video and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zoom Video Communications and MCEWEN MINING INC, you can compare the effects of market volatilities on Zoom Video 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 Zoom Video with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoom Video and MCEWEN MINING.
Diversification Opportunities for Zoom Video and MCEWEN MINING
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zoom and MCEWEN is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Zoom Video Communications 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 Zoom Video 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 Zoom Video Communications 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 Zoom Video i.e., Zoom Video and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Zoom Video and MCEWEN MINING
Assuming the 90 days trading horizon Zoom Video is expected to generate 2.76 times less return on investment than MCEWEN MINING. But when comparing it to its historical volatility, Zoom Video Communications is 1.73 times less risky than MCEWEN MINING. It trades about 0.02 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 620.00 in MCEWEN MINING INC on October 19, 2024 and sell it today you would earn a total of 190.00 from holding MCEWEN MINING INC or generate 30.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoom Video Communications vs. MCEWEN MINING INC
Performance |
| Timeline |
| Zoom Video Communications |
| MCEWEN MINING INC |
Zoom Video and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoom Video and MCEWEN MINING
The main advantage of trading using opposite Zoom Video and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoom Video 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.| Zoom Video vs. CRISPR Therapeutics AG | Zoom Video vs. ecotel communication ag | Zoom Video vs. Computershare Limited | Zoom Video vs. Lendlease Group |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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