Correlation Between Regions Financial and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Regions Financial 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 Regions Financial and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regions Financial and MCEWEN MINING INC, you can compare the effects of market volatilities on Regions Financial 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 Regions Financial with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and MCEWEN MINING.
Diversification Opportunities for Regions Financial and MCEWEN MINING
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regions and MCEWEN is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial 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 Regions Financial 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 Regions Financial 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 Regions Financial i.e., Regions Financial and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Regions Financial and MCEWEN MINING
Assuming the 90 days horizon Regions Financial is expected to generate 0.54 times more return on investment than MCEWEN MINING. However, Regions Financial is 1.84 times less risky than MCEWEN MINING. It trades about 0.2 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.03 per unit of risk. If you would invest 1,971 in Regions Financial on September 12, 2024 and sell it today you would earn a total of 509.00 from holding Regions Financial or generate 25.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regions Financial vs. MCEWEN MINING INC
Performance |
| Timeline |
| Regions Financial |
| MCEWEN MINING INC |
Regions Financial and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regions Financial and MCEWEN MINING
The main advantage of trading using opposite Regions Financial and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial 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.| Regions Financial vs. Fifth Third Bancorp | Regions Financial vs. Superior Plus Corp | Regions Financial vs. SIVERS SEMICONDUCTORS AB | Regions Financial vs. CHINA HUARONG ENERHD 50 |
| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Norsk Hydro ASA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |