Correlation Between McEwen Mining and Procter Gamble
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Procter Gamble 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 Procter Gamble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Procter Gamble DRC, you can compare the effects of market volatilities on McEwen Mining and Procter Gamble 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 Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Procter Gamble.
Diversification Opportunities for McEwen Mining and Procter Gamble
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between McEwen and Procter is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Procter Gamble DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble DRC 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 Procter Gamble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procter Gamble DRC has no effect on the direction of McEwen Mining i.e., McEwen Mining and Procter Gamble go up and down completely randomly.
Pair Corralation between McEwen Mining and Procter Gamble
Assuming the 90 days trading horizon McEwen Mining is expected to generate 1.68 times more return on investment than Procter Gamble. However, McEwen Mining is 1.68 times more volatile than Procter Gamble DRC. It trades about 0.13 of its potential returns per unit of risk. Procter Gamble DRC is currently generating about 0.04 per unit of risk. If you would invest 16,600 in McEwen Mining on September 12, 2024 and sell it today you would earn a total of 3,200 from holding McEwen Mining or generate 19.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
McEwen Mining vs. Procter Gamble DRC
Performance |
| Timeline |
| McEwen Mining |
| Procter Gamble DRC |
McEwen Mining and Procter Gamble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Procter Gamble
The main advantage of trading using opposite McEwen Mining and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Procter Gamble 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 Procter Gamble will offset losses from the drop in Procter Gamble's long position.| McEwen Mining vs. Prudential Financial | McEwen Mining vs. Micron Technology | McEwen Mining vs. Grupo Sports World | McEwen Mining vs. New Oriental Education |
| Procter Gamble vs. DXC Technology | Procter Gamble vs. Samsung Electronics Co | Procter Gamble vs. Verizon Communications | Procter Gamble vs. Grupo Carso SAB |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |