Correlation Between ANGLO ASIAN and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both ANGLO ASIAN 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 ANGLO ASIAN and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGLO ASIAN MINING and MCEWEN MINING INC, you can compare the effects of market volatilities on ANGLO ASIAN 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 ANGLO ASIAN with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLO ASIAN and MCEWEN MINING.
Diversification Opportunities for ANGLO ASIAN and MCEWEN MINING
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANGLO and MCEWEN is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding ANGLO ASIAN MINING 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 ANGLO ASIAN 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 ANGLO ASIAN MINING 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 ANGLO ASIAN i.e., ANGLO ASIAN and MCEWEN MINING go up and down completely randomly.
Pair Corralation between ANGLO ASIAN and MCEWEN MINING
Assuming the 90 days trading horizon ANGLO ASIAN MINING is expected to generate 1.02 times more return on investment than MCEWEN MINING. However, ANGLO ASIAN is 1.02 times more volatile than MCEWEN MINING INC. It trades about 0.1 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.01 per unit of risk. If you would invest 124.00 in ANGLO ASIAN MINING on November 4, 2024 and sell it today you would earn a total of 6.00 from holding ANGLO ASIAN MINING or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLO ASIAN MINING vs. MCEWEN MINING INC
Performance |
| Timeline |
| ANGLO ASIAN MINING |
| MCEWEN MINING INC |
ANGLO ASIAN and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLO ASIAN and MCEWEN MINING
The main advantage of trading using opposite ANGLO ASIAN and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLO ASIAN 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.| ANGLO ASIAN vs. United Natural Foods | ANGLO ASIAN vs. PROSIEBENSAT1 MEDIADR4 | ANGLO ASIAN vs. NH Foods | ANGLO ASIAN vs. Hollywood Bowl 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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