Correlation Between McEwen Mining and Teuton Resources
Can any of the company-specific risk be diversified away by investing in both McEwen Mining and Teuton Resources 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 Teuton Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and Teuton Resources Corp, you can compare the effects of market volatilities on McEwen Mining and Teuton Resources 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 Teuton Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and Teuton Resources.
Diversification Opportunities for McEwen Mining and Teuton Resources
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between McEwen and Teuton is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and Teuton Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teuton Resources 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 Teuton Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teuton Resources Corp has no effect on the direction of McEwen Mining i.e., McEwen Mining and Teuton Resources go up and down completely randomly.
Pair Corralation between McEwen Mining and Teuton Resources
Considering the 90-day investment horizon McEwen Mining is expected to generate 1.06 times less return on investment than Teuton Resources. But when comparing it to its historical volatility, McEwen Mining is 1.2 times less risky than Teuton Resources. It trades about 0.03 of its potential returns per unit of risk. Teuton Resources Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 75.00 in Teuton Resources Corp on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Teuton Resources Corp or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. Teuton Resources Corp
Performance |
| Timeline |
| McEwen Mining |
| Teuton Resources Corp |
McEwen Mining and Teuton Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and Teuton Resources
The main advantage of trading using opposite McEwen Mining and Teuton Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining position performs unexpectedly, Teuton Resources 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 Teuton Resources will offset losses from the drop in Teuton Resources' 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 |
| Teuton Resources vs. TVI Pacific | Teuton Resources vs. Silver Buckle Mines | Teuton Resources vs. Teuton Resources Corp | Teuton Resources vs. Industrias Penoles Sab |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |