Correlation Between McEwen Mining and AbbVie
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and AbbVie 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 McEwen Mining and AbbVie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and AbbVie Inc, you can compare the effects of market volatilities on McEwen Mining and AbbVie 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 McEwen Mining with a short position of AbbVie. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and AbbVie.
Diversification Opportunities for McEwen Mining and AbbVie
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between McEwen and AbbVie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and AbbVie Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AbbVie Inc and McEwen Mining 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 McEwen Mining are associated (or correlated) with AbbVie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AbbVie Inc has no effect on the direction of McEwen Mining i.e., McEwen Mining and AbbVie go up and down completely randomly.
Pair Corralation between McEwen Mining and AbbVie
If you would invest 347,700 in AbbVie Inc on September 19, 2024 and sell it today you would earn a total of 5,807 from holding AbbVie Inc or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
McEwen Mining vs. AbbVie Inc
Performance |
| Timeline |
| McEwen Mining |
| AbbVie Inc |
McEwen Mining and AbbVie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and AbbVie
The main advantage of trading using opposite McEwen Mining and AbbVie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, AbbVie 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 AbbVie will offset losses from the drop in AbbVie's long position.| McEwen Mining vs. United States Steel | McEwen Mining vs. Southwest Airlines | McEwen Mining vs. Hoteles City Express | McEwen Mining vs. FibraHotel |
| AbbVie vs. Micron Technology | AbbVie vs. McEwen Mining | AbbVie vs. First Majestic Silver | AbbVie vs. Verizon Communications |
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.
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