Correlation Between Monument Mining and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Monument Mining 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 Monument Mining and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monument Mining Limited and MCEWEN MINING INC, you can compare the effects of market volatilities on Monument Mining 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 Monument Mining with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monument Mining and MCEWEN MINING.
Diversification Opportunities for Monument Mining and MCEWEN MINING
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Monument and MCEWEN is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Monument Mining Limited 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 Monument Mining 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 Monument Mining Limited 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 Monument Mining i.e., Monument Mining and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Monument Mining and MCEWEN MINING
Assuming the 90 days trading horizon Monument Mining Limited is expected to generate 1.62 times more return on investment than MCEWEN MINING. However, Monument Mining is 1.62 times more volatile than MCEWEN MINING INC. It trades about 0.16 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.01 per unit of risk. If you would invest 9.15 in Monument Mining Limited on October 25, 2024 and sell it today you would earn a total of 13.85 from holding Monument Mining Limited or generate 151.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monument Mining Limited vs. MCEWEN MINING INC
Performance |
| Timeline |
| Monument Mining |
| MCEWEN MINING INC |
Monument Mining and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monument Mining and MCEWEN MINING
The main advantage of trading using opposite Monument Mining and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monument Mining 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.| Monument Mining vs. WillScot Mobile Mini | Monument Mining vs. SILVER BULLET DATA | Monument Mining vs. DATATEC LTD 2 | Monument Mining vs. Hyrican Informationssysteme Aktiengesellschaft |
| MCEWEN MINING vs. Sunny Optical Technology | MCEWEN MINING vs. VELA TECHNOLPLC LS 0001 | MCEWEN MINING vs. Uber Technologies | MCEWEN MINING vs. Agilent Technologies |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |