Correlation Between Heidelberg Materials and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Heidelberg Materials 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 Heidelberg Materials and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heidelberg Materials AG and MCEWEN MINING INC, you can compare the effects of market volatilities on Heidelberg Materials 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 Heidelberg Materials with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heidelberg Materials and MCEWEN MINING.
Diversification Opportunities for Heidelberg Materials and MCEWEN MINING
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Heidelberg and MCEWEN is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Heidelberg Materials AG 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 Heidelberg Materials 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 Heidelberg Materials AG 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 Heidelberg Materials i.e., Heidelberg Materials and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Heidelberg Materials and MCEWEN MINING
Assuming the 90 days horizon Heidelberg Materials AG is expected to generate 0.32 times more return on investment than MCEWEN MINING. However, Heidelberg Materials AG is 3.08 times less risky than MCEWEN MINING. It trades about 0.18 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.03 per unit of risk. If you would invest 11,820 in Heidelberg Materials AG on September 19, 2024 and sell it today you would earn a total of 530.00 from holding Heidelberg Materials AG or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heidelberg Materials AG vs. MCEWEN MINING INC
Performance |
| Timeline |
| Heidelberg Materials |
| MCEWEN MINING INC |
Heidelberg Materials and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heidelberg Materials and MCEWEN MINING
The main advantage of trading using opposite Heidelberg Materials and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heidelberg Materials 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.| Heidelberg Materials vs. Superior Plus Corp | Heidelberg Materials vs. NMI Holdings | Heidelberg Materials vs. SIVERS SEMICONDUCTORS AB | Heidelberg Materials vs. NorAm Drilling AS |
| MCEWEN MINING vs. Virtus Investment Partners | MCEWEN MINING vs. Chongqing Machinery Electric | MCEWEN MINING vs. Dairy Farm International | MCEWEN MINING vs. WIMFARM SA EO |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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