Correlation Between Catalyst Media and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Catalyst Media 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 Catalyst Media and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Media Group and McEwen Mining, you can compare the effects of market volatilities on Catalyst Media 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 Catalyst Media with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and McEwen Mining.
Diversification Opportunities for Catalyst Media and McEwen Mining
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catalyst and McEwen is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Catalyst Media 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 Catalyst Media Group 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 Catalyst Media i.e., Catalyst Media and McEwen Mining go up and down completely randomly.
Pair Corralation between Catalyst Media and McEwen Mining
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the McEwen Mining. But the stock apears to be less risky and, when comparing its historical volatility, Catalyst Media Group is 1.01 times less risky than McEwen Mining. The stock trades about -0.41 of its potential returns per unit of risk. The McEwen Mining is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 911.00 in McEwen Mining on September 3, 2024 and sell it today you would lose (80.00) from holding McEwen Mining or give up 8.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Media Group vs. McEwen Mining
Performance |
| Timeline |
| Catalyst Media Group |
| McEwen Mining |
Catalyst Media and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and McEwen Mining
The main advantage of trading using opposite Catalyst Media and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media 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.| Catalyst Media vs. Smithson Investment Trust | Catalyst Media vs. Kinnevik Investment AB | Catalyst Media vs. New Residential Investment | Catalyst Media vs. The Mercantile Investment |
| McEwen Mining vs. Evolution Gaming Group | McEwen Mining vs. Central Asia Metals | McEwen Mining vs. Blackrock World Mining | McEwen Mining vs. Hochschild Mining plc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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