Correlation Between McEwen Mining and Grupo Herdez
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Grupo Herdez 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 Grupo Herdez into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Grupo Herdez SAB, you can compare the effects of market volatilities on McEwen Mining and Grupo Herdez 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 Grupo Herdez. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Grupo Herdez.
Diversification Opportunities for McEwen Mining and Grupo Herdez
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between McEwen and Grupo is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Grupo Herdez SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Herdez SAB 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 Grupo Herdez. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Herdez SAB has no effect on the direction of McEwen Mining i.e., McEwen Mining and Grupo Herdez go up and down completely randomly.
Pair Corralation between McEwen Mining and Grupo Herdez
If you would invest 19,800 in McEwen Mining on September 2, 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 | 95.24% |
| Values | Daily Returns |
McEwen Mining vs. Grupo Herdez SAB
Performance |
| Timeline |
| McEwen Mining |
| Grupo Herdez SAB |
McEwen Mining and Grupo Herdez Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Grupo Herdez
The main advantage of trading using opposite McEwen Mining and Grupo Herdez positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Grupo Herdez 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 Grupo Herdez will offset losses from the drop in Grupo Herdez's long position.| McEwen Mining vs. Prudential Financial | McEwen Mining vs. FIBRA Storage | McEwen Mining vs. Ameriprise Financial | McEwen Mining vs. KB Home |
| Grupo Herdez vs. Hoteles City Express | Grupo Herdez vs. UnitedHealth Group Incorporated | Grupo Herdez vs. Southern Copper | Grupo Herdez vs. McEwen Mining |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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