Correlation Between McEwen Mining and Clifton Mining
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Clifton Mining 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 Clifton Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Clifton Mining Co, you can compare the effects of market volatilities on McEwen Mining and Clifton Mining 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 Clifton Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Clifton Mining.
Diversification Opportunities for McEwen Mining and Clifton Mining
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between McEwen and Clifton is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Clifton Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clifton Mining 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 Clifton Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clifton Mining has no effect on the direction of McEwen Mining i.e., McEwen Mining and Clifton Mining go up and down completely randomly.
Pair Corralation between McEwen Mining and Clifton Mining
Considering the 90-day investment horizon McEwen Mining is expected to generate 0.39 times more return on investment than Clifton Mining. However, McEwen Mining is 2.58 times less risky than Clifton Mining. It trades about 0.04 of its potential returns per unit of risk. Clifton Mining Co is currently generating about 0.01 per unit of risk. If you would invest 700.00 in McEwen Mining on November 3, 2024 and sell it today you would earn a total of 124.00 from holding McEwen Mining or generate 17.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
McEwen Mining vs. Clifton Mining Co
Performance |
| Timeline |
| McEwen Mining |
| Clifton Mining |
McEwen Mining and Clifton Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Clifton Mining
The main advantage of trading using opposite McEwen Mining and Clifton Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Clifton Mining 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 Clifton Mining will offset losses from the drop in Clifton Mining'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 |
| Clifton Mining vs. Cartier Iron Corp | Clifton Mining vs. Arctic Star Exploration | Clifton Mining vs. Capella Minerals Limited | Clifton Mining vs. Denarius Silver Corp |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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