Correlation Between PRECISION DRILLING and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both PRECISION DRILLING 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 PRECISION DRILLING and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PRECISION DRILLING P and MCEWEN MINING INC, you can compare the effects of market volatilities on PRECISION DRILLING 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 PRECISION DRILLING with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PRECISION DRILLING and MCEWEN MINING.
Diversification Opportunities for PRECISION DRILLING and MCEWEN MINING
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PRECISION and MCEWEN is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding PRECISION DRILLING P 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 PRECISION DRILLING 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 PRECISION DRILLING P 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 PRECISION DRILLING i.e., PRECISION DRILLING and MCEWEN MINING go up and down completely randomly.
Pair Corralation between PRECISION DRILLING and MCEWEN MINING
Assuming the 90 days trading horizon PRECISION DRILLING P is expected to under-perform the MCEWEN MINING. But the stock apears to be less risky and, when comparing its historical volatility, PRECISION DRILLING P is 1.39 times less risky than MCEWEN MINING. The stock trades about -0.05 of its potential returns per unit of risk. The MCEWEN MINING INC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 805.00 in MCEWEN MINING INC on September 2, 2024 and sell it today you would lose (20.00) from holding MCEWEN MINING INC or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PRECISION DRILLING P vs. MCEWEN MINING INC
Performance |
| Timeline |
| PRECISION DRILLING |
| MCEWEN MINING INC |
PRECISION DRILLING and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PRECISION DRILLING and MCEWEN MINING
The main advantage of trading using opposite PRECISION DRILLING and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PRECISION DRILLING 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.| PRECISION DRILLING vs. SHELF DRILLING LTD | PRECISION DRILLING vs. Daldrup Shne Aktiengesellschaft | PRECISION DRILLING vs. Superior Plus Corp | PRECISION DRILLING vs. NMI Holdings |
| MCEWEN MINING vs. LG Electronics | MCEWEN MINING vs. LIFENET INSURANCE CO | MCEWEN MINING vs. STMicroelectronics NV | MCEWEN MINING vs. Electronic Arts |
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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |