Correlation Between McEwen Mining and UTStarcom Holdings
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and UTStarcom Holdings 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 UTStarcom Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and UTStarcom Holdings Corp, you can compare the effects of market volatilities on McEwen Mining and UTStarcom Holdings 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 UTStarcom Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and UTStarcom Holdings.
Diversification Opportunities for McEwen Mining and UTStarcom Holdings
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between McEwen and UTStarcom is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and UTStarcom Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTStarcom Holdings Corp 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 UTStarcom Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTStarcom Holdings Corp has no effect on the direction of McEwen Mining i.e., McEwen Mining and UTStarcom Holdings go up and down completely randomly.
Pair Corralation between McEwen Mining and UTStarcom Holdings
Assuming the 90 days trading horizon McEwen Mining is expected to under-perform the UTStarcom Holdings. In addition to that, McEwen Mining is 2.69 times more volatile than UTStarcom Holdings Corp. It trades about -0.29 of its total potential returns per unit of risk. UTStarcom Holdings Corp is currently generating about -0.21 per unit of volatility. If you would invest 5,700 in UTStarcom Holdings Corp on November 28, 2024 and sell it today you would lose (437.00) from holding UTStarcom Holdings Corp or give up 7.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. UTStarcom Holdings Corp
Performance |
| Timeline |
| McEwen Mining |
| UTStarcom Holdings Corp |
McEwen Mining and UTStarcom Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and UTStarcom Holdings
The main advantage of trading using opposite McEwen Mining and UTStarcom Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, UTStarcom Holdings 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 UTStarcom Holdings will offset losses from the drop in UTStarcom Holdings' long position.| McEwen Mining vs. Air Transport Services | McEwen Mining vs. Delta Air Lines | McEwen Mining vs. Genworth Financial | McEwen Mining vs. Southern Copper |
| UTStarcom Holdings vs. New Oriental Education | UTStarcom Holdings vs. Micron Technology | UTStarcom Holdings vs. GMxico Transportes SAB | UTStarcom Holdings vs. CVS Health |
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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