Correlation Between Blackrock World and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Blackrock World 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 Blackrock World and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock World Mining and McEwen Mining, you can compare the effects of market volatilities on Blackrock World 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 Blackrock World with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock World and McEwen Mining.
Diversification Opportunities for Blackrock World and McEwen Mining
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blackrock and McEwen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock World Mining and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Blackrock World 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 Blackrock World 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 has no effect on the direction of Blackrock World i.e., Blackrock World and McEwen Mining go up and down completely randomly.
Pair Corralation between Blackrock World and McEwen Mining
Assuming the 90 days trading horizon Blackrock World Mining is expected to under-perform the McEwen Mining. But the stock apears to be less risky and, when comparing its historical volatility, Blackrock World Mining is 2.44 times less risky than McEwen Mining. The stock trades about -0.02 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 565.00 in McEwen Mining on August 30, 2024 and sell it today you would earn a total of 258.00 from holding McEwen Mining or generate 45.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Blackrock World Mining vs. McEwen Mining
Performance |
| Timeline |
| Blackrock World Mining |
| McEwen Mining |
Blackrock World and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock World and McEwen Mining
The main advantage of trading using opposite Blackrock World and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock World 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.| Blackrock World vs. Toyota Motor Corp | Blackrock World vs. Neometals | Blackrock World vs. Coor Service Management | Blackrock World vs. JPMorgan ETFs ICAV |
| McEwen Mining vs. Lendinvest PLC | McEwen Mining vs. Neometals | McEwen Mining vs. Albion Technology General | McEwen Mining vs. Jupiter Fund Management |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |