Correlation Between EVN AG and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both EVN AG 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 EVN AG and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVN AG and MCEWEN MINING INC, you can compare the effects of market volatilities on EVN AG 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 EVN AG with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVN AG and MCEWEN MINING.
Diversification Opportunities for EVN AG and MCEWEN MINING
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between EVN and MCEWEN is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding EVN AG 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 EVN AG 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 EVN AG 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 EVN AG i.e., EVN AG and MCEWEN MINING go up and down completely randomly.
Pair Corralation between EVN AG and MCEWEN MINING
Assuming the 90 days horizon EVN AG is expected to under-perform the MCEWEN MINING. But the stock apears to be less risky and, when comparing its historical volatility, EVN AG is 2.15 times less risky than MCEWEN MINING. The stock trades about -0.1 of its potential returns per unit of risk. The MCEWEN MINING INC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 795.00 in MCEWEN MINING INC on September 13, 2024 and sell it today you would earn a total of 20.00 from holding MCEWEN MINING INC or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVN AG vs. MCEWEN MINING INC
Performance |
| Timeline |
| EVN AG |
| MCEWEN MINING INC |
EVN AG and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVN AG and MCEWEN MINING
The main advantage of trading using opposite EVN AG and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVN AG 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.| EVN AG vs. Western Copper and | EVN AG vs. BRIT AMER TOBACCO | EVN AG vs. MCEWEN MINING INC | EVN AG vs. Perseus Mining Limited |
| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Norsk Hydro ASA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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