Correlation Between Ocean Harvest and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Ocean Harvest 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 Ocean Harvest and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Harvest Technology and McEwen Mining, you can compare the effects of market volatilities on Ocean Harvest 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 Ocean Harvest with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Harvest and McEwen Mining.
Diversification Opportunities for Ocean Harvest and McEwen Mining
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ocean and McEwen is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Harvest Technology and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Ocean Harvest 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 Ocean Harvest Technology 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 has no effect on the direction of Ocean Harvest i.e., Ocean Harvest and McEwen Mining go up and down completely randomly.
Pair Corralation between Ocean Harvest and McEwen Mining
Assuming the 90 days trading horizon Ocean Harvest Technology is expected to generate 0.68 times more return on investment than McEwen Mining. However, Ocean Harvest Technology is 1.47 times less risky than McEwen Mining. It trades about -0.09 of its potential returns per unit of risk. McEwen Mining is currently generating about -0.24 per unit of risk. If you would invest 900.00 in Ocean Harvest Technology on September 2, 2024 and sell it today you would lose (25.00) from holding Ocean Harvest Technology or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocean Harvest Technology vs. McEwen Mining
Performance |
| Timeline |
| Ocean Harvest Technology |
| McEwen Mining |
Ocean Harvest and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Harvest and McEwen Mining
The main advantage of trading using opposite Ocean Harvest and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Harvest 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.| Ocean Harvest vs. GoldMining | Ocean Harvest vs. Invesco Physical Silver | Ocean Harvest vs. Westlake Chemical Corp | Ocean Harvest vs. Games Workshop Group |
| McEwen Mining vs. Uniper SE | McEwen Mining vs. Mulberry Group PLC | McEwen Mining vs. London Security Plc | McEwen Mining vs. Triad Group PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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