Correlation Between Fluor and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Fluor 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 Fluor and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluor and McEwen Mining, you can compare the effects of market volatilities on Fluor 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 Fluor with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluor and McEwen Mining.
Diversification Opportunities for Fluor and McEwen Mining
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fluor and McEwen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Fluor and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Fluor 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 Fluor 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 Fluor i.e., Fluor and McEwen Mining go up and down completely randomly.
Pair Corralation between Fluor and McEwen Mining
If you would invest 19,800 in McEwen Mining on August 30, 2024 and sell it today you would earn a total of 0.00 from holding McEwen Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluor vs. McEwen Mining
Performance |
| Timeline |
| Fluor |
| McEwen Mining |
Fluor and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluor and McEwen Mining
The main advantage of trading using opposite Fluor and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluor 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.| Fluor vs. GMxico Transportes SAB | Fluor vs. Monster Beverage Corp | Fluor vs. DXC Technology | Fluor vs. Grupo Sports World |
| McEwen Mining vs. The Select Sector | McEwen Mining vs. SPDR Series Trust | McEwen Mining vs. FibroGen | McEwen Mining vs. iShares Trust |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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