Correlation Between McEwen Mining and Baidu
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Baidu 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 Baidu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Baidu Inc, you can compare the effects of market volatilities on McEwen Mining and Baidu 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 Baidu. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Baidu.
Diversification Opportunities for McEwen Mining and Baidu
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between McEwen and Baidu is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Baidu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baidu 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 Baidu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baidu Inc has no effect on the direction of McEwen Mining i.e., McEwen Mining and Baidu go up and down completely randomly.
Pair Corralation between McEwen Mining and Baidu
If you would invest 174,783 in Baidu Inc on September 14, 2024 and sell it today you would earn a total of 3,017 from holding Baidu Inc or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Baidu Inc
Performance |
| Timeline |
| McEwen Mining |
| Baidu Inc |
McEwen Mining and Baidu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Baidu
The main advantage of trading using opposite McEwen Mining and Baidu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Baidu 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 Baidu will offset losses from the drop in Baidu's long position.| McEwen Mining vs. Compaa Minera Autln | McEwen Mining vs. The Select Sector | McEwen Mining vs. Promotora y Operadora | McEwen Mining vs. iShares Global Timber |
| Baidu vs. Samsung Electronics Co | Baidu vs. Cognizant Technology Solutions | Baidu vs. Grupo Sports World | Baidu vs. FibraHotel |
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 CEOs Directory module to screen CEOs from public companies around the world.
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