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
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GameStop and MCEWEN is -0.34. 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 generate 2.05 times more return on investment than MCEWEN MINING. However, GameStop Corp is 2.05 times more volatile than MCEWEN MINING INC. It trades about 0.04 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.04 per unit of risk. If you would invest 2,413 in GameStop Corp on August 24, 2024 and sell it today you would earn a total of 270.00 from holding GameStop Corp or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| 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. eBay Inc | GameStop Corp vs. Superior Plus Corp | GameStop Corp vs. NMI Holdings | GameStop Corp vs. Origin Agritech |
| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |