Correlation Between Kering SA and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Kering SA 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 Kering SA and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kering SA and MCEWEN MINING INC, you can compare the effects of market volatilities on Kering SA 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 Kering SA with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kering SA and MCEWEN MINING.
Diversification Opportunities for Kering SA and MCEWEN MINING
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kering and MCEWEN is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kering SA 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 Kering SA 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 Kering SA 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 Kering SA i.e., Kering SA and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Kering SA and MCEWEN MINING
Assuming the 90 days trading horizon Kering SA is expected to generate 0.86 times more return on investment than MCEWEN MINING. However, Kering SA is 1.16 times less risky than MCEWEN MINING. It trades about 0.15 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.05 per unit of risk. If you would invest 22,215 in Kering SA on September 13, 2024 and sell it today you would earn a total of 1,980 from holding Kering SA or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kering SA vs. MCEWEN MINING INC
Performance |
| Timeline |
| Kering SA |
| MCEWEN MINING INC |
Kering SA and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kering SA and MCEWEN MINING
The main advantage of trading using opposite Kering SA and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kering SA 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.| Kering SA vs. BJs Wholesale Club | Kering SA vs. SPARTAN STORES | Kering SA vs. Renesas Electronics | Kering SA vs. Methode Electronics |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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