Correlation Between McEwen Mining and Schlumberger
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Schlumberger 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 Schlumberger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Schlumberger Limited, you can compare the effects of market volatilities on McEwen Mining and Schlumberger 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 Schlumberger. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Schlumberger.
Diversification Opportunities for McEwen Mining and Schlumberger
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between McEwen and Schlumberger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Schlumberger Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schlumberger Limited 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 Schlumberger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schlumberger Limited has no effect on the direction of McEwen Mining i.e., McEwen Mining and Schlumberger go up and down completely randomly.
Pair Corralation between McEwen Mining and Schlumberger
If you would invest 74,482 in Schlumberger Limited on October 24, 2024 and sell it today you would earn a total of 16,318 from holding Schlumberger Limited or generate 21.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
McEwen Mining vs. Schlumberger Limited
Performance |
| Timeline |
| McEwen Mining |
| Schlumberger Limited |
McEwen Mining and Schlumberger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Schlumberger
The main advantage of trading using opposite McEwen Mining and Schlumberger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Schlumberger 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 Schlumberger will offset losses from the drop in Schlumberger's long position.| McEwen Mining vs. GMxico Transportes SAB | McEwen Mining vs. The Bank of | McEwen Mining vs. Micron Technology | McEwen Mining vs. Grupo Hotelero Santa |
| Schlumberger vs. Martin Marietta Materials | Schlumberger vs. Cognizant Technology Solutions | Schlumberger vs. Lloyds Banking Group | Schlumberger vs. DXC Technology |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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