Correlation Between McEwen Mining and Grupo Lamosa
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Grupo Lamosa 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 Lamosa 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 Lamosa SAB, you can compare the effects of market volatilities on McEwen Mining and Grupo Lamosa 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 Lamosa. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Grupo Lamosa.
Diversification Opportunities for McEwen Mining and Grupo Lamosa
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between McEwen and Grupo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Grupo Lamosa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Lamosa 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 Lamosa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Lamosa SAB has no effect on the direction of McEwen Mining i.e., McEwen Mining and Grupo Lamosa go up and down completely randomly.
Pair Corralation between McEwen Mining and Grupo Lamosa
Assuming the 90 days trading horizon McEwen Mining is expected to generate 9.33 times more return on investment than Grupo Lamosa. However, McEwen Mining is 9.33 times more volatile than Grupo Lamosa SAB. It trades about 0.05 of its potential returns per unit of risk. Grupo Lamosa SAB is currently generating about 0.01 per unit of risk. If you would invest 7,500 in McEwen Mining on October 9, 2024 and sell it today you would earn a total of 12,300 from holding McEwen Mining or generate 164.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Grupo Lamosa SAB
Performance |
| Timeline |
| McEwen Mining |
| Grupo Lamosa SAB |
McEwen Mining and Grupo Lamosa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Grupo Lamosa
The main advantage of trading using opposite McEwen Mining and Grupo Lamosa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Grupo Lamosa 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 Lamosa will offset losses from the drop in Grupo Lamosa's long position.| McEwen Mining vs. Micron Technology | McEwen Mining vs. United States Steel | McEwen Mining vs. DXC Technology | McEwen Mining vs. Grupo Sports World |
| Grupo Lamosa vs. Grupo Aeroportuario del | Grupo Lamosa vs. Grupo Aeroportuario del | Grupo Lamosa vs. Gruma SAB de | Grupo Lamosa vs. Grupo Financiero Banorte |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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