Correlation Between McEwen Mining and Fiserv
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Fiserv 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 Fiserv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Fiserv Inc, you can compare the effects of market volatilities on McEwen Mining and Fiserv 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 Fiserv. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Fiserv.
Diversification Opportunities for McEwen Mining and Fiserv
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between McEwen and Fiserv is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Fiserv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiserv 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 Fiserv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiserv Inc has no effect on the direction of McEwen Mining i.e., McEwen Mining and Fiserv go up and down completely randomly.
Pair Corralation between McEwen Mining and Fiserv
If you would invest 344,620 in Fiserv Inc on August 29, 2024 and sell it today you would earn a total of 101,392 from holding Fiserv Inc or generate 29.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Fiserv Inc
Performance |
| Timeline |
| McEwen Mining |
| Fiserv Inc |
McEwen Mining and Fiserv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Fiserv
The main advantage of trading using opposite McEwen Mining and Fiserv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Fiserv 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 Fiserv will offset losses from the drop in Fiserv's long position.| McEwen Mining vs. The Select Sector | McEwen Mining vs. SPDR Series Trust | McEwen Mining vs. FibroGen | McEwen Mining vs. iShares Trust |
| Fiserv vs. Verizon Communications | Fiserv vs. McEwen Mining | Fiserv vs. United Airlines Holdings | Fiserv vs. Cognizant Technology Solutions |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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