Correlation Between ONWARD MEDICAL and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both ONWARD MEDICAL 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 ONWARD MEDICAL and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONWARD MEDICAL BV and MCEWEN MINING INC, you can compare the effects of market volatilities on ONWARD MEDICAL 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 ONWARD MEDICAL with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONWARD MEDICAL and MCEWEN MINING.
Diversification Opportunities for ONWARD MEDICAL and MCEWEN MINING
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ONWARD and MCEWEN is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding ONWARD MEDICAL BV 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 ONWARD MEDICAL 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 ONWARD MEDICAL BV 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 ONWARD MEDICAL i.e., ONWARD MEDICAL and MCEWEN MINING go up and down completely randomly.
Pair Corralation between ONWARD MEDICAL and MCEWEN MINING
Assuming the 90 days horizon ONWARD MEDICAL BV is expected to generate 0.8 times more return on investment than MCEWEN MINING. However, ONWARD MEDICAL BV is 1.24 times less risky than MCEWEN MINING. It trades about -0.03 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.16 per unit of risk. If you would invest 461.00 in ONWARD MEDICAL BV on August 29, 2024 and sell it today you would lose (14.00) from holding ONWARD MEDICAL BV or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ONWARD MEDICAL BV vs. MCEWEN MINING INC
Performance |
| Timeline |
| ONWARD MEDICAL BV |
| MCEWEN MINING INC |
ONWARD MEDICAL and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONWARD MEDICAL and MCEWEN MINING
The main advantage of trading using opposite ONWARD MEDICAL and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONWARD MEDICAL 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.| ONWARD MEDICAL vs. Superior Plus Corp | ONWARD MEDICAL vs. NMI Holdings | ONWARD MEDICAL vs. Origin Agritech | ONWARD MEDICAL vs. SIVERS SEMICONDUCTORS AB |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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