Correlation Between 3I Group and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both 3I Group 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 3I Group and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3I Group PLC and McEwen Mining, you can compare the effects of market volatilities on 3I Group 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 3I Group with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3I Group and McEwen Mining.
Diversification Opportunities for 3I Group and McEwen Mining
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between III and McEwen is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding 3I Group PLC and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and 3I Group 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 3I Group PLC 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 3I Group i.e., 3I Group and McEwen Mining go up and down completely randomly.
Pair Corralation between 3I Group and McEwen Mining
Assuming the 90 days trading horizon 3I Group PLC is expected to generate 0.46 times more return on investment than McEwen Mining. However, 3I Group PLC is 2.17 times less risky than McEwen Mining. It trades about 0.08 of its potential returns per unit of risk. McEwen Mining is currently generating about -0.02 per unit of risk. If you would invest 306,336 in 3I Group PLC on September 24, 2024 and sell it today you would earn a total of 48,464 from holding 3I Group PLC or generate 15.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
3I Group PLC vs. McEwen Mining
Performance |
| Timeline |
| 3I Group PLC |
| McEwen Mining |
3I Group and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3I Group and McEwen Mining
The main advantage of trading using opposite 3I Group and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3I Group 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.| 3I Group vs. Darden Restaurants | 3I Group vs. New Residential Investment | 3I Group vs. Kinnevik Investment AB | 3I Group vs. Scandinavian Tobacco Group |
| McEwen Mining vs. Fortune Brands Home | McEwen Mining vs. alstria office REIT AG | McEwen Mining vs. bet at home AG | McEwen Mining vs. Zoom Video 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |