Correlation Between Klöckner and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Klöckner 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 Klöckner and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klckner Co SE and MCEWEN MINING INC, you can compare the effects of market volatilities on Klöckner 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 Klöckner with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klöckner and MCEWEN MINING.
Diversification Opportunities for Klöckner and MCEWEN MINING
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Klöckner and MCEWEN is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Klckner Co SE 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 Klöckner 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 Klckner Co SE 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 Klöckner i.e., Klöckner and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Klöckner and MCEWEN MINING
Assuming the 90 days horizon Klckner Co SE is expected to under-perform the MCEWEN MINING. But the stock apears to be less risky and, when comparing its historical volatility, Klckner Co SE is 2.15 times less risky than MCEWEN MINING. The stock trades about -0.08 of its potential returns per unit of risk. The MCEWEN MINING INC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 805.00 in MCEWEN MINING INC on September 3, 2024 and sell it today you would lose (20.00) from holding MCEWEN MINING INC or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Klckner Co SE vs. MCEWEN MINING INC
Performance |
| Timeline |
| Klckner Co SE |
| MCEWEN MINING INC |
Klöckner and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klöckner and MCEWEN MINING
The main advantage of trading using opposite Klöckner and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klöckner 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.| Klöckner vs. MCEWEN MINING INC | Klöckner vs. GRUPO CARSO A1 | Klöckner vs. HYATT HOTELS A | Klöckner vs. Choice Hotels International |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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