Correlation Between McEwen Mining and Grupo Minsa
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Grupo Minsa 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 Minsa 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 Minsa SAB, you can compare the effects of market volatilities on McEwen Mining and Grupo Minsa 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 Minsa. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Grupo Minsa.
Diversification Opportunities for McEwen Mining and Grupo Minsa
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between McEwen and Grupo is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Grupo Minsa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Minsa 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 Minsa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Minsa SAB has no effect on the direction of McEwen Mining i.e., McEwen Mining and Grupo Minsa go up and down completely randomly.
Pair Corralation between McEwen Mining and Grupo Minsa
If you would invest 880.00 in Grupo Minsa SAB on August 24, 2024 and sell it today you would earn a total of 12.00 from holding Grupo Minsa SAB or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Grupo Minsa SAB
Performance |
| Timeline |
| McEwen Mining |
| Grupo Minsa SAB |
McEwen Mining and Grupo Minsa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Grupo Minsa
The main advantage of trading using opposite McEwen Mining and Grupo Minsa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Grupo Minsa 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 Minsa will offset losses from the drop in Grupo Minsa'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 |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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