Correlation Between Impax Asset and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Impax Asset 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 Impax Asset and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impax Asset Management and McEwen Mining, you can compare the effects of market volatilities on Impax Asset 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 Impax Asset with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impax Asset and McEwen Mining.
Diversification Opportunities for Impax Asset and McEwen Mining
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Impax and McEwen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Impax Asset Management and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Impax Asset 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 Impax Asset Management 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 Impax Asset i.e., Impax Asset and McEwen Mining go up and down completely randomly.
Pair Corralation between Impax Asset and McEwen Mining
Assuming the 90 days trading horizon Impax Asset Management is expected to under-perform the McEwen Mining. In addition to that, Impax Asset is 2.24 times more volatile than McEwen Mining. It trades about -0.25 of its total potential returns per unit of risk. McEwen Mining is currently generating about -0.07 per unit of volatility. If you would invest 865.00 in McEwen Mining on October 11, 2024 and sell it today you would lose (33.00) from holding McEwen Mining or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impax Asset Management vs. McEwen Mining
Performance |
| Timeline |
| Impax Asset Management |
| McEwen Mining |
Impax Asset and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impax Asset and McEwen Mining
The main advantage of trading using opposite Impax Asset and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impax Asset 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.| Impax Asset vs. Telecom Italia SpA | Impax Asset vs. HCA Healthcare | Impax Asset vs. Aeorema Communications Plc | Impax Asset vs. Medical Properties Trust |
| McEwen Mining vs. Empire Metals Limited | McEwen Mining vs. Hochschild Mining plc | McEwen Mining vs. Lundin Mining Corp | McEwen Mining vs. First Class Metals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |