Correlation Between Grupo Industrial and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Grupo Industrial 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 Grupo Industrial and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Industrial Saltillo and McEwen Mining, you can compare the effects of market volatilities on Grupo Industrial 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 Grupo Industrial with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Industrial and McEwen Mining.
Diversification Opportunities for Grupo Industrial and McEwen Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and McEwen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Industrial Saltillo and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Grupo Industrial 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 Grupo Industrial Saltillo 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 Grupo Industrial i.e., Grupo Industrial and McEwen Mining go up and down completely randomly.
Pair Corralation between Grupo Industrial and McEwen Mining
If you would invest 1,670 in Grupo Industrial Saltillo on October 24, 2024 and sell it today you would earn a total of 105.00 from holding Grupo Industrial Saltillo or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Industrial Saltillo vs. McEwen Mining
Performance |
| Timeline |
| Grupo Industrial Saltillo |
| McEwen Mining |
Grupo Industrial and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Industrial and McEwen Mining
The main advantage of trading using opposite Grupo Industrial and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Industrial 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.| Grupo Industrial vs. Cydsa SAB de | Grupo Industrial vs. Promotora y Operadora | Grupo Industrial vs. Grupo KUO SAB | Grupo Industrial vs. Organizacin Cultiba SAB |
| McEwen Mining vs. GMxico Transportes SAB | McEwen Mining vs. The Bank of | McEwen Mining vs. Micron Technology | McEwen Mining vs. Grupo Hotelero Santa |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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