Correlation Between PREMIER FOODS and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both PREMIER FOODS 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 PREMIER FOODS and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PREMIER FOODS and MCEWEN MINING INC, you can compare the effects of market volatilities on PREMIER FOODS 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 PREMIER FOODS with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PREMIER FOODS and MCEWEN MINING.
Diversification Opportunities for PREMIER FOODS and MCEWEN MINING
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between PREMIER and MCEWEN is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PREMIER FOODS 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 PREMIER FOODS 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 PREMIER FOODS 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 PREMIER FOODS i.e., PREMIER FOODS and MCEWEN MINING go up and down completely randomly.
Pair Corralation between PREMIER FOODS and MCEWEN MINING
Assuming the 90 days trading horizon PREMIER FOODS is expected to generate 13.22 times less return on investment than MCEWEN MINING. But when comparing it to its historical volatility, PREMIER FOODS is 1.16 times less risky than MCEWEN MINING. It trades about 0.01 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 785.00 in MCEWEN MINING INC on November 7, 2024 and sell it today you would earn a total of 35.00 from holding MCEWEN MINING INC or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PREMIER FOODS vs. MCEWEN MINING INC
Performance |
| Timeline |
| PREMIER FOODS |
| MCEWEN MINING INC |
PREMIER FOODS and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PREMIER FOODS and MCEWEN MINING
The main advantage of trading using opposite PREMIER FOODS and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PREMIER FOODS 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.| PREMIER FOODS vs. Beta Systems Software | PREMIER FOODS vs. Casio Computer CoLtd | PREMIER FOODS vs. Kingdee International Software | PREMIER FOODS vs. Meli Hotels International |
| MCEWEN MINING vs. Addtech AB | MCEWEN MINING vs. PT Steel Pipe | MCEWEN MINING vs. Tianjin Capital Environmental | MCEWEN MINING vs. ELL ENVIRONHLDGS HD 0001 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges |