Correlation Between McEwen Mining and Atlas Lithium
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Atlas Lithium 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 Atlas Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Atlas Lithium, you can compare the effects of market volatilities on McEwen Mining and Atlas Lithium 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 Atlas Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Atlas Lithium.
Diversification Opportunities for McEwen Mining and Atlas Lithium
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between McEwen and Atlas is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Atlas Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Lithium 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 Atlas Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Lithium has no effect on the direction of McEwen Mining i.e., McEwen Mining and Atlas Lithium go up and down completely randomly.
Pair Corralation between McEwen Mining and Atlas Lithium
Considering the 90-day investment horizon McEwen Mining is expected to generate 0.51 times more return on investment than Atlas Lithium. However, McEwen Mining is 1.96 times less risky than Atlas Lithium. It trades about 0.04 of its potential returns per unit of risk. Atlas Lithium is currently generating about 0.02 per unit of risk. If you would invest 574.00 in McEwen Mining on November 9, 2024 and sell it today you would earn a total of 291.00 from holding McEwen Mining or generate 50.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Atlas Lithium
Performance |
| Timeline |
| McEwen Mining |
| Atlas Lithium |
McEwen Mining and Atlas Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Atlas Lithium
The main advantage of trading using opposite McEwen Mining and Atlas Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Atlas Lithium 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 Atlas Lithium will offset losses from the drop in Atlas Lithium's long position.| McEwen Mining vs. Endeavour Silver Corp | McEwen Mining vs. Fortuna Silver Mines | McEwen Mining vs. New Gold | McEwen Mining vs. Sandstorm Gold Ltd |
| Atlas Lithium vs. SilverCrest Metals | Atlas Lithium vs. New Pacific Metals | Atlas Lithium vs. Endeavour Silver Corp | Atlas Lithium vs. McEwen Mining |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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