Correlation Between McEwen Mining and Disney
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Disney 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 Disney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and The Walt Disney, you can compare the effects of market volatilities on McEwen Mining and Disney 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 Disney. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Disney.
Diversification Opportunities for McEwen Mining and Disney
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between McEwen and Disney is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and The Walt Disney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walt Disney 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 Disney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walt Disney has no effect on the direction of McEwen Mining i.e., McEwen Mining and Disney go up and down completely randomly.
Pair Corralation between McEwen Mining and Disney
If you would invest 207,664 in The Walt Disney on September 13, 2024 and sell it today you would earn a total of 22,704 from holding The Walt Disney or generate 10.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
McEwen Mining vs. The Walt Disney
Performance |
| Timeline |
| McEwen Mining |
| Walt Disney |
McEwen Mining and Disney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Disney
The main advantage of trading using opposite McEwen Mining and Disney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Disney 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 Disney will offset losses from the drop in Disney'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 |
| Disney vs. Hoteles City Express | Disney vs. Verizon Communications | Disney vs. Grupo Sports World | Disney vs. Micron Technology |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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