Correlation Between Idaho Champion and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Idaho Champion 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 Idaho Champion and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Idaho Champion Gold and McEwen Mining, you can compare the effects of market volatilities on Idaho Champion 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 Idaho Champion with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idaho Champion and McEwen Mining.
Diversification Opportunities for Idaho Champion and McEwen Mining
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Idaho and McEwen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Idaho Champion Gold and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Idaho Champion 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 Idaho Champion Gold 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 Idaho Champion i.e., Idaho Champion and McEwen Mining go up and down completely randomly.
Pair Corralation between Idaho Champion and McEwen Mining
Assuming the 90 days horizon Idaho Champion Gold is expected to generate 2.78 times more return on investment than McEwen Mining. However, Idaho Champion is 2.78 times more volatile than McEwen Mining. It trades about 0.12 of its potential returns per unit of risk. McEwen Mining is currently generating about 0.04 per unit of risk. If you would invest 3.58 in Idaho Champion Gold on August 26, 2024 and sell it today you would earn a total of 8.42 from holding Idaho Champion Gold or generate 235.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 31.79% |
| Values | Daily Returns |
Idaho Champion Gold vs. McEwen Mining
Performance |
| Timeline |
| Idaho Champion Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| McEwen Mining |
Idaho Champion and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Idaho Champion and McEwen Mining
The main advantage of trading using opposite Idaho Champion and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idaho Champion 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.| Idaho Champion vs. Origen Resources | Idaho Champion vs. Thunder Mountain Gold | Idaho Champion vs. Pacific Ridge Exploration | Idaho Champion vs. Mantaro Silver Corp |
| McEwen Mining vs. Endeavour Silver Corp | McEwen Mining vs. Fortuna Silver Mines | McEwen Mining vs. New Gold | McEwen Mining vs. Sandstorm Gold Ltd |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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