Correlation Between COMINTL BANK and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both COMINTL BANK 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 COMINTL BANK and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMINTL BANK ADR1 and MCEWEN MINING INC, you can compare the effects of market volatilities on COMINTL BANK 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 COMINTL BANK with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMINTL BANK and MCEWEN MINING.
Diversification Opportunities for COMINTL BANK and MCEWEN MINING
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COMINTL and MCEWEN is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding COMINTL BANK ADR1 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 COMINTL BANK 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 COMINTL BANK ADR1 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 COMINTL BANK i.e., COMINTL BANK and MCEWEN MINING go up and down completely randomly.
Pair Corralation between COMINTL BANK and MCEWEN MINING
Assuming the 90 days trading horizon COMINTL BANK is expected to generate 3.11 times less return on investment than MCEWEN MINING. But when comparing it to its historical volatility, COMINTL BANK ADR1 is 1.56 times less risky than MCEWEN MINING. It trades about 0.02 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 520.00 in MCEWEN MINING INC on August 30, 2024 and sell it today you would earn a total of 265.00 from holding MCEWEN MINING INC or generate 50.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
COMINTL BANK ADR1 vs. MCEWEN MINING INC
Performance |
| Timeline |
| COMINTL BANK ADR1 |
| MCEWEN MINING INC |
COMINTL BANK and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMINTL BANK and MCEWEN MINING
The main advantage of trading using opposite COMINTL BANK and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMINTL BANK 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.The idea behind COMINTL BANK ADR1 and MCEWEN MINING INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Talanx AG |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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