Correlation Between McEwen Mining and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Morgan Stanley 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 Morgan Stanley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Morgan Stanley, you can compare the effects of market volatilities on McEwen Mining and Morgan Stanley 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 Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Morgan Stanley.
Diversification Opportunities for McEwen Mining and Morgan Stanley
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between McEwen and Morgan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Morgan Stanley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley 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 Morgan Stanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morgan Stanley has no effect on the direction of McEwen Mining i.e., McEwen Mining and Morgan Stanley go up and down completely randomly.
Pair Corralation between McEwen Mining and Morgan Stanley
If you would invest 19,800 in McEwen Mining on September 12, 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 Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
McEwen Mining vs. Morgan Stanley
Performance |
| Timeline |
| McEwen Mining |
| Morgan Stanley |
McEwen Mining and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Morgan Stanley
The main advantage of trading using opposite McEwen Mining and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Morgan Stanley 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 Morgan Stanley will offset losses from the drop in Morgan Stanley's long position.| McEwen Mining vs. Compaa Minera Autln | McEwen Mining vs. The Select Sector | McEwen Mining vs. Promotora y Operadora | McEwen Mining vs. iShares Global Timber |
| Morgan Stanley vs. The Goldman Sachs | Morgan Stanley vs. Value Grupo Financiero | Morgan Stanley vs. Casa de Bolsa | Morgan Stanley vs. Procorp SAB de |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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