Correlation Between Casio Computer and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Casio Computer 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 Casio Computer and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casio Computer CoLtd and MCEWEN MINING INC, you can compare the effects of market volatilities on Casio Computer 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 Casio Computer with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casio Computer and MCEWEN MINING.
Diversification Opportunities for Casio Computer and MCEWEN MINING
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Casio and MCEWEN is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Casio Computer CoLtd 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 Casio Computer 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 Casio Computer CoLtd 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 Casio Computer i.e., Casio Computer and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Casio Computer and MCEWEN MINING
Assuming the 90 days trading horizon Casio Computer CoLtd is expected to generate 0.59 times more return on investment than MCEWEN MINING. However, Casio Computer CoLtd is 1.71 times less risky than MCEWEN MINING. It trades about 0.24 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.03 per unit of risk. If you would invest 665.00 in Casio Computer CoLtd on October 25, 2024 and sell it today you would earn a total of 119.00 from holding Casio Computer CoLtd or generate 17.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Casio Computer CoLtd vs. MCEWEN MINING INC
Performance |
| Timeline |
| Casio Computer CoLtd |
| MCEWEN MINING INC |
Casio Computer and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casio Computer and MCEWEN MINING
The main advantage of trading using opposite Casio Computer and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casio Computer 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.| Casio Computer vs. CHRYSALIS INVESTMENTS LTD | Casio Computer vs. Entravision Communications | Casio Computer vs. FIRST SAVINGS FINL | Casio Computer vs. HUTCHISON TELECOMM |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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