Correlation Between McEwen Mining and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Samsung Electronics 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 Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Samsung Electronics Co, you can compare the effects of market volatilities on McEwen Mining and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Samsung Electronics.
Diversification Opportunities for McEwen Mining and Samsung Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between McEwen and Samsung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of McEwen Mining i.e., McEwen Mining and Samsung Electronics go up and down completely randomly.
Pair Corralation between McEwen Mining and Samsung Electronics
Assuming the 90 days trading horizon McEwen Mining is expected to generate 1.0 times more return on investment than Samsung Electronics. However, McEwen Mining is 1.0 times less risky than Samsung Electronics. It trades about 0.1 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.18 per unit of risk. If you would invest 16,600 in McEwen Mining on November 2, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Samsung Electronics Co
Performance |
| Timeline |
| McEwen Mining |
| Samsung Electronics |
McEwen Mining and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Samsung Electronics
The main advantage of trading using opposite McEwen Mining and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| McEwen Mining vs. Verizon Communications | McEwen Mining vs. Grupo Sports World | McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Monster Beverage Corp |
| Samsung Electronics vs. KB Home | Samsung Electronics vs. First Majestic Silver | Samsung Electronics vs. Desarrolladora Homex SAB | Samsung Electronics vs. Verizon Communications |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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