Correlation Between Identiv and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Identiv 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 Identiv and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and MCEWEN MINING INC, you can compare the effects of market volatilities on Identiv 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 Identiv with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and MCEWEN MINING.
Diversification Opportunities for Identiv and MCEWEN MINING
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Identiv and MCEWEN is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Identiv 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 Identiv 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 Identiv 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 Identiv i.e., Identiv and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Identiv and MCEWEN MINING
Assuming the 90 days trading horizon Identiv is expected to generate 1.04 times more return on investment than MCEWEN MINING. However, Identiv is 1.04 times more volatile than MCEWEN MINING INC. It trades about 0.01 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.0 per unit of risk. If you would invest 369.00 in Identiv on October 26, 2024 and sell it today you would lose (20.00) from holding Identiv or give up 5.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. MCEWEN MINING INC
Performance |
| Timeline |
| Identiv |
| MCEWEN MINING INC |
Identiv and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and MCEWEN MINING
The main advantage of trading using opposite Identiv and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv 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.| Identiv vs. USWE SPORTS AB | Identiv vs. Columbia Sportswear | Identiv vs. AOI Electronics Co | Identiv vs. Richardson Electronics |
| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. Identiv | MCEWEN MINING vs. INTUITIVE SURGICAL |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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