Correlation Between McEwen Mining and TopBuild Corp
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and TopBuild Corp 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 TopBuild Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and TopBuild Corp, you can compare the effects of market volatilities on McEwen Mining and TopBuild Corp 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 TopBuild Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and TopBuild Corp.
Diversification Opportunities for McEwen Mining and TopBuild Corp
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between McEwen and TopBuild is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and TopBuild Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TopBuild Corp 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 TopBuild Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TopBuild Corp has no effect on the direction of McEwen Mining i.e., McEwen Mining and TopBuild Corp go up and down completely randomly.
Pair Corralation between McEwen Mining and TopBuild Corp
Assuming the 90 days trading horizon McEwen Mining is expected to generate 1.67 times more return on investment than TopBuild Corp. However, McEwen Mining is 1.67 times more volatile than TopBuild Corp. It trades about 0.05 of its potential returns per unit of risk. TopBuild Corp is currently generating about 0.04 per unit of risk. If you would invest 7,500 in McEwen Mining on August 31, 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 | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. TopBuild Corp
Performance |
| Timeline |
| McEwen Mining |
| TopBuild Corp |
McEwen Mining and TopBuild Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and TopBuild Corp
The main advantage of trading using opposite McEwen Mining and TopBuild Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, TopBuild Corp 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 TopBuild Corp will offset losses from the drop in TopBuild Corp's long position.| McEwen Mining vs. DXC Technology | McEwen Mining vs. Lloyds Banking Group | McEwen Mining vs. Ross Stores | McEwen Mining vs. Micron Technology |
| TopBuild Corp vs. Grupo Hotelero Santa | TopBuild Corp vs. Monster Beverage Corp | TopBuild Corp vs. Taiwan Semiconductor Manufacturing | TopBuild Corp vs. McEwen Mining |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |