Correlation Between GameStop Corp and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both GameStop Corp 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 GameStop Corp and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and MCEWEN MINING INC, you can compare the effects of market volatilities on GameStop Corp 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 GameStop Corp with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and MCEWEN MINING.
Diversification Opportunities for GameStop Corp and MCEWEN MINING
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GameStop and MCEWEN is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC and GameStop Corp 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 GameStop Corp 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 INC has no effect on the direction of GameStop Corp i.e., GameStop Corp and MCEWEN MINING go up and down completely randomly.
Pair Corralation between GameStop Corp and MCEWEN MINING
Assuming the 90 days trading horizon GameStop Corp is expected to under-perform the MCEWEN MINING. In addition to that, GameStop Corp is 1.31 times more volatile than MCEWEN MINING INC. It trades about -0.1 of its total potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.13 per unit of volatility. If you would invest 765.00 in MCEWEN MINING INC on October 21, 2024 and sell it today you would earn a total of 40.00 from holding MCEWEN MINING INC or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameStop Corp vs. MCEWEN MINING INC
Performance |
| Timeline |
| GameStop Corp |
| MCEWEN MINING INC |
GameStop Corp and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and MCEWEN MINING
The main advantage of trading using opposite GameStop Corp and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp 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.| GameStop Corp vs. Highlight Communications AG | GameStop Corp vs. Nippon Light Metal | GameStop Corp vs. Air Transport Services | GameStop Corp vs. Cars Inc |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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