Correlation Between McEwen Mining and Grupo Hotelero
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Grupo Hotelero 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 Hotelero 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 Hotelero Santa, you can compare the effects of market volatilities on McEwen Mining and Grupo Hotelero 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 Hotelero. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Grupo Hotelero.
Diversification Opportunities for McEwen Mining and Grupo Hotelero
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between McEwen and Grupo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Grupo Hotelero Santa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Hotelero Santa 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 Hotelero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Hotelero Santa has no effect on the direction of McEwen Mining i.e., McEwen Mining and Grupo Hotelero go up and down completely randomly.
Pair Corralation between McEwen Mining and Grupo Hotelero
If you would invest 369.00 in Grupo Hotelero Santa on August 24, 2024 and sell it today you would earn a total of 29.00 from holding Grupo Hotelero Santa or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Grupo Hotelero Santa
Performance |
| Timeline |
| McEwen Mining |
| Grupo Hotelero Santa |
McEwen Mining and Grupo Hotelero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Grupo Hotelero
The main advantage of trading using opposite McEwen Mining and Grupo Hotelero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Grupo Hotelero 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 Hotelero will offset losses from the drop in Grupo Hotelero'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 |
| Grupo Hotelero vs. Deutsche Bank Aktiengesellschaft | Grupo Hotelero vs. Prudential Financial | Grupo Hotelero vs. First Majestic Silver | Grupo Hotelero 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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