Correlation Between Baillie Gifford and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford 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 Baillie Gifford and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford European and McEwen Mining, you can compare the effects of market volatilities on Baillie Gifford 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 Baillie Gifford with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and McEwen Mining.
Diversification Opportunities for Baillie Gifford and McEwen Mining
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baillie and McEwen is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford European and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Baillie Gifford 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 Baillie Gifford European 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 Baillie Gifford i.e., Baillie Gifford and McEwen Mining go up and down completely randomly.
Pair Corralation between Baillie Gifford and McEwen Mining
Assuming the 90 days trading horizon Baillie Gifford is expected to generate 3.11 times less return on investment than McEwen Mining. But when comparing it to its historical volatility, Baillie Gifford European is 3.48 times less risky than McEwen Mining. It trades about 0.02 of its potential returns per unit of risk. McEwen Mining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 756.00 in McEwen Mining on December 10, 2024 and sell it today you would lose (19.00) from holding McEwen Mining or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.81% |
| Values | Daily Returns |
Baillie Gifford European vs. McEwen Mining
Performance |
| Timeline |
| Baillie Gifford European |
| McEwen Mining |
Baillie Gifford and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and McEwen Mining
The main advantage of trading using opposite Baillie Gifford and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford 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.| Baillie Gifford vs. Seche Environnement SA | Baillie Gifford vs. Scottish American Investment | Baillie Gifford vs. Bell Food Group | Baillie Gifford vs. Leroy Seafood Group |
| McEwen Mining vs. Molson Coors Beverage | McEwen Mining vs. JD Sports Fashion | McEwen Mining vs. Ecclesiastical Insurance Office | McEwen Mining vs. Ashtead Technology Holdings |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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