Correlation Between McEwen Mining and Vista Oil
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Vista Oil 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 Vista Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Vista Oil Gas, you can compare the effects of market volatilities on McEwen Mining and Vista Oil 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 Vista Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Vista Oil.
Diversification Opportunities for McEwen Mining and Vista Oil
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between McEwen and Vista is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Vista Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vista Oil Gas 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 Vista Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vista Oil Gas has no effect on the direction of McEwen Mining i.e., McEwen Mining and Vista Oil go up and down completely randomly.
Pair Corralation between McEwen Mining and Vista Oil
If you would invest 19,800 in McEwen Mining on September 30, 2024 and sell it today you would earn a total of 0.00 from holding McEwen Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
McEwen Mining vs. Vista Oil Gas
Performance |
| Timeline |
| McEwen Mining |
| Vista Oil Gas |
McEwen Mining and Vista Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Vista Oil
The main advantage of trading using opposite McEwen Mining and Vista Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Vista Oil 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 Vista Oil will offset losses from the drop in Vista Oil's long position.| McEwen Mining vs. Grupo Carso SAB | McEwen Mining vs. FIBRA Storage | McEwen Mining vs. First Majestic Silver | McEwen Mining vs. Samsung Electronics Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |