Correlation Between GAMESTOP and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both GAMESTOP 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 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 and MCEWEN MINING INC, you can compare the effects of market volatilities on GAMESTOP 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 with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMESTOP and MCEWEN MINING.
Diversification Opportunities for GAMESTOP and MCEWEN MINING
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GAMESTOP and MCEWEN is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding GAMESTOP 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 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 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 i.e., GAMESTOP and MCEWEN MINING go up and down completely randomly.
Pair Corralation between GAMESTOP and MCEWEN MINING
Assuming the 90 days trading horizon GAMESTOP is expected to under-perform the MCEWEN MINING. In addition to that, GAMESTOP is 1.23 times more volatile than MCEWEN MINING INC. It trades about -0.02 of its total potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.01 per unit of volatility. If you would invest 785.00 in MCEWEN MINING INC on October 30, 2024 and sell it today you would earn a total of 0.00 from holding MCEWEN MINING INC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMESTOP vs. MCEWEN MINING INC
Performance |
| Timeline |
| GAMESTOP |
| MCEWEN MINING INC |
GAMESTOP and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMESTOP and MCEWEN MINING
The main advantage of trading using opposite GAMESTOP and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMESTOP 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 vs. TELECOM ITALIA | GAMESTOP vs. CITIC Telecom International | GAMESTOP vs. China Communications Services | GAMESTOP vs. SK TELECOM TDADR |
| MCEWEN MINING vs. CAL MAINE FOODS | MCEWEN MINING vs. RYANAIR HLDGS ADR | MCEWEN MINING vs. United Natural Foods | MCEWEN MINING vs. PREMIER FOODS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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