Correlation Between Codex Acquisitions and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Codex Acquisitions 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 Codex Acquisitions and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codex Acquisitions PLC and McEwen Mining, you can compare the effects of market volatilities on Codex Acquisitions 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 Codex Acquisitions with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codex Acquisitions and McEwen Mining.
Diversification Opportunities for Codex Acquisitions and McEwen Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Codex and McEwen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Codex Acquisitions PLC and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Codex Acquisitions 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 Codex Acquisitions 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 Codex Acquisitions i.e., Codex Acquisitions and McEwen Mining go up and down completely randomly.
Pair Corralation between Codex Acquisitions and McEwen Mining
Assuming the 90 days trading horizon Codex Acquisitions PLC is expected to under-perform the McEwen Mining. In addition to that, Codex Acquisitions is 1.25 times more volatile than McEwen Mining. It trades about -0.05 of its total potential returns per unit of risk. McEwen Mining is currently generating about 0.04 per unit of volatility. 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 | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Codex Acquisitions PLC vs. McEwen Mining
Performance |
| Timeline |
| Codex Acquisitions PLC |
| McEwen Mining |
Codex Acquisitions and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codex Acquisitions and McEwen Mining
The main advantage of trading using opposite Codex Acquisitions and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codex Acquisitions 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.| Codex Acquisitions vs. Samsung Electronics Co | Codex Acquisitions vs. Samsung Electronics Co | Codex Acquisitions vs. Toyota Motor Corp | Codex Acquisitions vs. Hon Hai Precision |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |