Correlation Between Grupo Hotelero and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Grupo Hotelero 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 Grupo Hotelero and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Hotelero Santa and McEwen Mining, you can compare the effects of market volatilities on Grupo Hotelero 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 Grupo Hotelero with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Hotelero and McEwen Mining.
Diversification Opportunities for Grupo Hotelero and McEwen Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and McEwen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Hotelero Santa and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Grupo Hotelero 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 Grupo Hotelero Santa 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 Grupo Hotelero i.e., Grupo Hotelero and McEwen Mining go up and down completely randomly.
Pair Corralation between Grupo Hotelero and McEwen Mining
If you would invest 380.00 in Grupo Hotelero Santa on October 20, 2024 and sell it today you would earn a total of 8.00 from holding Grupo Hotelero Santa or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Hotelero Santa vs. McEwen Mining
Performance |
| Timeline |
| Grupo Hotelero Santa |
| McEwen Mining |
Grupo Hotelero and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Hotelero and McEwen Mining
The main advantage of trading using opposite Grupo Hotelero and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Hotelero 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.| Grupo Hotelero vs. Genworth Financial | Grupo Hotelero vs. Deutsche Bank Aktiengesellschaft | Grupo Hotelero vs. FIBRA Storage | Grupo Hotelero vs. Grupo Industrial Saltillo |
| McEwen Mining vs. Grupo Sports World | McEwen Mining vs. Delta Air Lines | McEwen Mining vs. New Oriental Education | McEwen Mining vs. Verizon Communications |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |