Correlation Between Barclays PLC and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Barclays PLC 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 Barclays PLC and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays PLC and McEwen Mining, you can compare the effects of market volatilities on Barclays PLC 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 Barclays PLC with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays PLC and McEwen Mining.
Diversification Opportunities for Barclays PLC and McEwen Mining
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barclays and McEwen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Barclays PLC and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Barclays PLC 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 Barclays PLC 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 has no effect on the direction of Barclays PLC i.e., Barclays PLC and McEwen Mining go up and down completely randomly.
Pair Corralation between Barclays PLC and McEwen Mining
If you would invest 22,010 in Barclays PLC on September 13, 2024 and sell it today you would earn a total of 4,990 from holding Barclays PLC or generate 22.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barclays PLC vs. McEwen Mining
Performance |
| Timeline |
| Barclays PLC |
| McEwen Mining |
Barclays PLC and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays PLC and McEwen Mining
The main advantage of trading using opposite Barclays PLC and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays PLC 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.| Barclays PLC vs. Verizon Communications | Barclays PLC vs. FIBRA Storage | Barclays PLC vs. GMxico Transportes SAB | Barclays PLC vs. McEwen Mining |
| McEwen Mining vs. Prudential Financial | McEwen Mining vs. Micron Technology | McEwen Mining vs. Grupo Sports World | McEwen Mining vs. New Oriental Education |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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