Correlation Between Gaming Realms and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Gaming Realms 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 Gaming Realms and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming Realms plc and McEwen Mining, you can compare the effects of market volatilities on Gaming Realms 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 Gaming Realms with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Realms and McEwen Mining.
Diversification Opportunities for Gaming Realms and McEwen Mining
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaming and McEwen is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Realms plc and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Gaming Realms 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 Gaming Realms plc 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 Gaming Realms i.e., Gaming Realms and McEwen Mining go up and down completely randomly.
Pair Corralation between Gaming Realms and McEwen Mining
Assuming the 90 days trading horizon Gaming Realms is expected to generate 4.07 times less return on investment than McEwen Mining. In addition to that, Gaming Realms is 1.25 times more volatile than McEwen Mining. It trades about 0.03 of its total potential returns per unit of risk. McEwen Mining is currently generating about 0.14 per unit of volatility. If you would invest 793.00 in McEwen Mining on October 24, 2024 and sell it today you would earn a total of 47.00 from holding McEwen Mining or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gaming Realms plc vs. McEwen Mining
Performance |
| Timeline |
| Gaming Realms plc |
| McEwen Mining |
Gaming Realms and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Realms and McEwen Mining
The main advantage of trading using opposite Gaming Realms and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Realms 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.| Gaming Realms vs. Samsung Electronics Co | Gaming Realms vs. Samsung Electronics Co | Gaming Realms vs. Toyota Motor Corp | Gaming Realms vs. Reliance Industries Ltd |
| McEwen Mining vs. XLMedia PLC | McEwen Mining vs. Fonix Mobile plc | McEwen Mining vs. Catalyst Media Group | McEwen Mining vs. Liberty Media Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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