Correlation Between Magna International and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Magna International 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 Magna International and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magna International and McEwen Mining, you can compare the effects of market volatilities on Magna International 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 Magna International with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna International and McEwen Mining.
Diversification Opportunities for Magna International and McEwen Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magna and McEwen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Magna International and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Magna International 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 Magna International 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 Magna International i.e., Magna International and McEwen Mining go up and down completely randomly.
Pair Corralation between Magna International and McEwen Mining
If you would invest 7,500 in McEwen Mining on September 3, 2024 and sell it today you would earn a total of 12,300 from holding McEwen Mining or generate 164.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Magna International vs. McEwen Mining
Performance |
| Timeline |
| Magna International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| McEwen Mining |
Magna International and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna International and McEwen Mining
The main advantage of trading using opposite Magna International and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna International 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.| Magna International vs. Grupo Hotelero Santa | Magna International vs. GMxico Transportes SAB | Magna International vs. Micron Technology | Magna International vs. Southern Copper |
| McEwen Mining vs. Glencore plc | McEwen Mining vs. Minera Frisco SAB | McEwen Mining vs. The Select Sector | McEwen Mining vs. Promotora y Operadora |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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