Correlation Between GreenX Metals and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both GreenX Metals 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 GreenX Metals and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and McEwen Mining, you can compare the effects of market volatilities on GreenX Metals 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 GreenX Metals with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and McEwen Mining.
Diversification Opportunities for GreenX Metals and McEwen Mining
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GreenX and McEwen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and GreenX Metals 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 GreenX Metals 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 GreenX Metals i.e., GreenX Metals and McEwen Mining go up and down completely randomly.
Pair Corralation between GreenX Metals and McEwen Mining
Assuming the 90 days trading horizon GreenX Metals is expected to generate 1.52 times more return on investment than McEwen Mining. However, GreenX Metals is 1.52 times more volatile than McEwen Mining. It trades about -0.01 of its potential returns per unit of risk. McEwen Mining is currently generating about -0.04 per unit of risk. If you would invest 3,800 in GreenX Metals on August 26, 2024 and sell it today you would lose (350.00) from holding GreenX Metals or give up 9.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
GreenX Metals vs. McEwen Mining
Performance |
| Timeline |
| GreenX Metals |
| McEwen Mining |
GreenX Metals and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and McEwen Mining
The main advantage of trading using opposite GreenX Metals and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals 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.| GreenX Metals vs. Spirent Communications plc | GreenX Metals vs. European Metals Holdings | GreenX Metals vs. Zoom Video Communications | GreenX Metals vs. Cornish Metals |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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