Correlation Between McEwen Mining and Fibra UNO
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Fibra UNO 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 Fibra UNO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Fibra UNO, you can compare the effects of market volatilities on McEwen Mining and Fibra UNO 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 Fibra UNO. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Fibra UNO.
Diversification Opportunities for McEwen Mining and Fibra UNO
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between McEwen and Fibra is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Fibra UNO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibra UNO 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 Fibra UNO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibra UNO has no effect on the direction of McEwen Mining i.e., McEwen Mining and Fibra UNO go up and down completely randomly.
Pair Corralation between McEwen Mining and Fibra UNO
If you would invest 19,800 in McEwen Mining on August 31, 2024 and sell it today you would earn a total of 0.00 from holding McEwen Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Fibra UNO
Performance |
| Timeline |
| McEwen Mining |
| Fibra UNO |
McEwen Mining and Fibra UNO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Fibra UNO
The main advantage of trading using opposite McEwen Mining and Fibra UNO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Fibra UNO 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 Fibra UNO will offset losses from the drop in Fibra UNO's long position.| McEwen Mining vs. DXC Technology | McEwen Mining vs. Lloyds Banking Group | McEwen Mining vs. Ross Stores | McEwen Mining vs. Micron Technology |
| Fibra UNO vs. Grupo Sports World | Fibra UNO vs. Micron Technology | Fibra UNO vs. McEwen Mining | Fibra UNO vs. Capital One Financial |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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