Correlation Between McEwen Mining and Walmart
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Walmart 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 Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Walmart, you can compare the effects of market volatilities on McEwen Mining and Walmart 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 Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Walmart.
Diversification Opportunities for McEwen Mining and Walmart
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between McEwen and Walmart is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart 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 Walmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walmart has no effect on the direction of McEwen Mining i.e., McEwen Mining and Walmart go up and down completely randomly.
Pair Corralation between McEwen Mining and Walmart
If you would invest 164,402 in Walmart on August 31, 2024 and sell it today you would earn a total of 24,306 from holding Walmart or generate 14.78% 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. Walmart
Performance |
| Timeline |
| McEwen Mining |
| Walmart |
McEwen Mining and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Walmart
The main advantage of trading using opposite McEwen Mining and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Walmart 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 Walmart will offset losses from the drop in Walmart's long position.| McEwen Mining vs. DXC Technology | McEwen Mining vs. Lloyds Banking Group | McEwen Mining vs. Ross Stores | McEwen Mining vs. Micron Technology |
| Walmart vs. FIBRA Storage | Walmart vs. Grupo Hotelero Santa | Walmart vs. Hoteles City Express | Walmart vs. Lloyds Banking Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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