Correlation Between McEwen Mining and FibraHotel
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and FibraHotel 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 FibraHotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and FibraHotel, you can compare the effects of market volatilities on McEwen Mining and FibraHotel 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 FibraHotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and FibraHotel.
Diversification Opportunities for McEwen Mining and FibraHotel
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between McEwen and FibraHotel is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and FibraHotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FibraHotel 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 FibraHotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FibraHotel has no effect on the direction of McEwen Mining i.e., McEwen Mining and FibraHotel go up and down completely randomly.
Pair Corralation between McEwen Mining and FibraHotel
If you would invest 770.00 in FibraHotel on August 24, 2024 and sell it today you would earn a total of 114.00 from holding FibraHotel or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
McEwen Mining vs. FibraHotel
Performance |
| Timeline |
| McEwen Mining |
| FibraHotel |
McEwen Mining and FibraHotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and FibraHotel
The main advantage of trading using opposite McEwen Mining and FibraHotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, FibraHotel 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 FibraHotel will offset losses from the drop in FibraHotel's long position.| McEwen Mining vs. Verizon Communications | McEwen Mining vs. Monster Beverage Corp | McEwen Mining vs. CVS Health | McEwen Mining vs. Grupo Sports World |
| FibraHotel vs. United Airlines Holdings | FibraHotel vs. Verizon Communications | FibraHotel vs. The Bank of | FibraHotel vs. Deutsche Bank Aktiengesellschaft |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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