Correlation Between Bisichi Mining and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Bisichi Mining 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 Bisichi Mining and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bisichi Mining PLC and McEwen Mining, you can compare the effects of market volatilities on Bisichi Mining 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 Bisichi Mining with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bisichi Mining and McEwen Mining.
Diversification Opportunities for Bisichi Mining and McEwen Mining
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bisichi and McEwen is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bisichi Mining PLC and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Bisichi Mining 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 Bisichi Mining 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 Bisichi Mining i.e., Bisichi Mining and McEwen Mining go up and down completely randomly.
Pair Corralation between Bisichi Mining and McEwen Mining
Assuming the 90 days trading horizon Bisichi Mining PLC is expected to under-perform the McEwen Mining. But the stock apears to be less risky and, when comparing its historical volatility, Bisichi Mining PLC is 1.29 times less risky than McEwen Mining. The stock trades about -0.05 of its potential returns per unit of risk. The McEwen Mining is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 563.00 in McEwen Mining on August 26, 2024 and sell it today you would earn a total of 279.00 from holding McEwen Mining or generate 49.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bisichi Mining PLC vs. McEwen Mining
Performance |
| Timeline |
| Bisichi Mining PLC |
| McEwen Mining |
Bisichi Mining and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bisichi Mining and McEwen Mining
The main advantage of trading using opposite Bisichi Mining and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bisichi Mining 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.| Bisichi Mining vs. Zoom Video Communications | Bisichi Mining vs. Enbridge | Bisichi Mining vs. Endo International PLC | Bisichi Mining vs. Diversified Energy |
| McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Hyundai Motor | McEwen Mining vs. Toyota Motor Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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