Correlation Between McEwen Mining and Capital One
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Capital One 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 Capital One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Capital One Financial, you can compare the effects of market volatilities on McEwen Mining and Capital One 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 Capital One. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Capital One.
Diversification Opportunities for McEwen Mining and Capital One
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between McEwen and Capital is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Capital One Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital One Financial 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 Capital One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital One Financial has no effect on the direction of McEwen Mining i.e., McEwen Mining and Capital One go up and down completely randomly.
Pair Corralation between McEwen Mining and Capital One
If you would invest 292,280 in Capital One Financial on August 25, 2024 and sell it today you would earn a total of 90,706 from holding Capital One Financial or generate 31.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
McEwen Mining vs. Capital One Financial
Performance |
| Timeline |
| McEwen Mining |
| Capital One Financial |
McEwen Mining and Capital One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Capital One
The main advantage of trading using opposite McEwen Mining and Capital One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Capital One 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 Capital One will offset losses from the drop in Capital One's long position.| McEwen Mining vs. Ameriprise Financial | McEwen Mining vs. United Airlines Holdings | McEwen Mining vs. Capital One Financial | McEwen Mining vs. First Republic Bank |
| Capital One vs. FibraHotel | Capital One vs. Verizon Communications | Capital One vs. Delta Air Lines | Capital One vs. GMxico Transportes SAB |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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