Correlation Between TAL Education and MCEWEN MINING

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both TAL Education 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 TAL Education and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAL Education Group and MCEWEN MINING INC, you can compare the effects of market volatilities on TAL Education 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 TAL Education with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAL Education and MCEWEN MINING.

Diversification Opportunities for TAL Education and MCEWEN MINING

0.4
  Correlation Coefficient

Very weak diversification

The 3 months correlation between TAL and MCEWEN is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding TAL Education Group 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 TAL Education 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 TAL Education Group 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 TAL Education i.e., TAL Education and MCEWEN MINING go up and down completely randomly.

Pair Corralation between TAL Education and MCEWEN MINING

Assuming the 90 days trading horizon TAL Education Group is expected to generate 1.25 times more return on investment than MCEWEN MINING. However, TAL Education is 1.25 times more volatile than MCEWEN MINING INC. It trades about 0.0 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.06 per unit of risk. If you would invest  1,060  in TAL Education Group on September 1, 2024 and sell it today you would lose (95.00) from holding TAL Education Group or give up 8.96% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

TAL Education Group  vs.  MCEWEN MINING INC

 Performance 
       Timeline  
TAL Education Group 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in TAL Education Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, TAL Education unveiled solid returns over the last few months and may actually be approaching a breakup point.
MCEWEN MINING INC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days MCEWEN MINING INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, MCEWEN MINING is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

TAL Education and MCEWEN MINING Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TAL Education and MCEWEN MINING

The main advantage of trading using opposite TAL Education and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAL Education 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.
The idea behind TAL Education Group and MCEWEN MINING INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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

Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals