Correlation Between AEON STORES and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both AEON STORES 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 AEON STORES and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON STORES and MCEWEN MINING INC, you can compare the effects of market volatilities on AEON STORES 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 AEON STORES with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON STORES and MCEWEN MINING.
Diversification Opportunities for AEON STORES and MCEWEN MINING
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between AEON and MCEWEN is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding AEON STORES 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 AEON STORES 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 AEON STORES 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 AEON STORES i.e., AEON STORES and MCEWEN MINING go up and down completely randomly.
Pair Corralation between AEON STORES and MCEWEN MINING
Assuming the 90 days trading horizon AEON STORES is expected to under-perform the MCEWEN MINING. But the stock apears to be less risky and, when comparing its historical volatility, AEON STORES is 2.41 times less risky than MCEWEN MINING. The stock trades about -0.24 of its potential returns per unit of risk. The MCEWEN MINING INC is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 785.00 in MCEWEN MINING INC on October 1, 2024 and sell it today you would lose (20.00) from holding MCEWEN MINING INC or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON STORES vs. MCEWEN MINING INC
Performance |
| Timeline |
| AEON STORES |
| MCEWEN MINING INC |
AEON STORES and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON STORES and MCEWEN MINING
The main advantage of trading using opposite AEON STORES and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON STORES 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.The idea behind AEON STORES and MCEWEN MINING INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MCEWEN MINING vs. Microchip Technology Incorporated | MCEWEN MINING vs. ULTRA CLEAN HLDGS | MCEWEN MINING vs. Align Technology | MCEWEN MINING vs. Carnegie Clean Energy |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |