Correlation Between INSURANCE AUST and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both INSURANCE AUST and MCEWEN 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 INSURANCE AUST and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INSURANCE AUST GRP and MCEWEN MINING INC, you can compare the effects of market volatilities on INSURANCE AUST and MCEWEN 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 INSURANCE AUST with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of INSURANCE AUST and MCEWEN MINING.
Diversification Opportunities for INSURANCE AUST and MCEWEN MINING
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INSURANCE and MCEWEN is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding INSURANCE AUST GRP and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC and INSURANCE AUST 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 INSURANCE AUST GRP are associated (or correlated) with MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of INSURANCE AUST i.e., INSURANCE AUST and MCEWEN MINING go up and down completely randomly.
Pair Corralation between INSURANCE AUST and MCEWEN MINING
Assuming the 90 days trading horizon INSURANCE AUST GRP is expected to generate 0.48 times more return on investment than MCEWEN MINING. However, INSURANCE AUST GRP is 2.08 times less risky than MCEWEN MINING. It trades about 0.38 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.2 per unit of risk. If you would invest 444.00 in INSURANCE AUST GRP on September 1, 2024 and sell it today you would earn a total of 71.00 from holding INSURANCE AUST GRP or generate 15.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INSURANCE AUST GRP vs. MCEWEN MINING INC
Performance |
| Timeline |
| INSURANCE AUST GRP |
| MCEWEN MINING INC |
INSURANCE AUST and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INSURANCE AUST and MCEWEN MINING
The main advantage of trading using opposite INSURANCE AUST and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INSURANCE AUST position performs unexpectedly, MCEWEN 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.| INSURANCE AUST vs. SIVERS SEMICONDUCTORS AB | INSURANCE AUST vs. Darden Restaurants | INSURANCE AUST vs. Reliance Steel Aluminum | INSURANCE AUST vs. Q2M Managementberatung AG |
| MCEWEN MINING vs. COMMERCIAL VEHICLE | MCEWEN MINING vs. Pick n Pay | MCEWEN MINING vs. PICKN PAY STORES | MCEWEN MINING vs. Commercial Vehicle 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |