Correlation Between Greenroc Mining and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Greenroc Mining 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 Greenroc Mining and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenroc Mining PLC and McEwen Mining, you can compare the effects of market volatilities on Greenroc Mining 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 Greenroc Mining with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenroc Mining and McEwen Mining.
Diversification Opportunities for Greenroc Mining and McEwen Mining
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Greenroc and McEwen is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Greenroc Mining PLC and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Greenroc Mining 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 Greenroc Mining 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 Greenroc Mining i.e., Greenroc Mining and McEwen Mining go up and down completely randomly.
Pair Corralation between Greenroc Mining and McEwen Mining
Assuming the 90 days trading horizon Greenroc Mining PLC is expected to generate 1.33 times more return on investment than McEwen Mining. However, Greenroc Mining is 1.33 times more volatile than McEwen Mining. It trades about -0.02 of its potential returns per unit of risk. McEwen Mining is currently generating about -0.05 per unit of risk. If you would invest 155.00 in Greenroc Mining PLC on September 5, 2024 and sell it today you would lose (10.00) from holding Greenroc Mining PLC or give up 6.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenroc Mining PLC vs. McEwen Mining
Performance |
| Timeline |
| Greenroc Mining PLC |
| McEwen Mining |
Greenroc Mining and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenroc Mining and McEwen Mining
The main advantage of trading using opposite Greenroc Mining and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenroc Mining 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.| Greenroc Mining vs. Albion Technology General | Greenroc Mining vs. Check Point Software | Greenroc Mining vs. Ashtead Technology Holdings | Greenroc Mining vs. Pfeiffer Vacuum Technology |
| McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Hyundai Motor | McEwen Mining vs. Toyota Motor 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| 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 | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |