Correlation Between McEwen Mining and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Grupo Simec 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 Simec 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 Simec SAB, you can compare the effects of market volatilities on McEwen Mining and Grupo Simec 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 Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Grupo Simec.
Diversification Opportunities for McEwen Mining and Grupo Simec
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 Simec SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Simec 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 Simec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Simec SAB has no effect on the direction of McEwen Mining i.e., McEwen Mining and Grupo Simec go up and down completely randomly.
Pair Corralation between McEwen Mining and Grupo Simec
If you would invest 18,500 in Grupo Simec SAB on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Grupo Simec SAB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
McEwen Mining vs. Grupo Simec SAB
Performance |
| Timeline |
| McEwen Mining |
| Grupo Simec SAB |
McEwen Mining and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Grupo Simec
The main advantage of trading using opposite McEwen Mining and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Grupo Simec 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 Simec will offset losses from the drop in Grupo Simec's long position.| McEwen Mining vs. The Select Sector | McEwen Mining vs. SPDR Series Trust | McEwen Mining vs. FibroGen | McEwen Mining vs. iShares Trust |
| Grupo Simec vs. Enphase Energy, | Grupo Simec vs. The Home Depot | Grupo Simec vs. The Select Sector | Grupo Simec vs. Promotora y Operadora |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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