Correlation Between McEwen Mining and Goodyear Tire
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Goodyear Tire 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 Goodyear Tire 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 Goodyear Tire, you can compare the effects of market volatilities on McEwen Mining and Goodyear Tire 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 Goodyear Tire. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Goodyear Tire.
Diversification Opportunities for McEwen Mining and Goodyear Tire
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between McEwen and Goodyear is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and The Goodyear Tire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodyear Tire 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 Goodyear Tire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodyear Tire has no effect on the direction of McEwen Mining i.e., McEwen Mining and Goodyear Tire go up and down completely randomly.
Pair Corralation between McEwen Mining and Goodyear Tire
If you would invest 18,100 in The Goodyear Tire on November 7, 2024 and sell it today you would earn a total of 0.00 from holding The Goodyear Tire or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
McEwen Mining vs. The Goodyear Tire
Performance |
| Timeline |
| McEwen Mining |
| Goodyear Tire |
McEwen Mining and Goodyear Tire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Goodyear Tire
The main advantage of trading using opposite McEwen Mining and Goodyear Tire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Goodyear Tire 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 Goodyear Tire will offset losses from the drop in Goodyear Tire's long position.| McEwen Mining vs. Costco Wholesale | McEwen Mining vs. Genworth Financial | McEwen Mining vs. GMxico Transportes SAB | McEwen Mining vs. New Oriental Education |
| Goodyear Tire vs. DXC Technology | Goodyear Tire vs. Southwest Airlines | Goodyear Tire vs. Verizon Communications | Goodyear Tire vs. The Home Depot |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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