Correlation Between SPORTING and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both SPORTING 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 SPORTING and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPORTING and MCEWEN MINING INC, you can compare the effects of market volatilities on SPORTING 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 SPORTING with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPORTING and MCEWEN MINING.
Diversification Opportunities for SPORTING and MCEWEN MINING
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPORTING and MCEWEN is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SPORTING 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 SPORTING 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 SPORTING 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 SPORTING i.e., SPORTING and MCEWEN MINING go up and down completely randomly.
Pair Corralation between SPORTING and MCEWEN MINING
Assuming the 90 days trading horizon SPORTING is expected to generate 1.61 times less return on investment than MCEWEN MINING. But when comparing it to its historical volatility, SPORTING is 1.63 times less risky than MCEWEN MINING. It trades about 0.03 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 705.00 in MCEWEN MINING INC on September 12, 2024 and sell it today you would earn a total of 110.00 from holding MCEWEN MINING INC or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPORTING vs. MCEWEN MINING INC
Performance |
| Timeline |
| SPORTING |
| MCEWEN MINING INC |
SPORTING and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPORTING and MCEWEN MINING
The main advantage of trading using opposite SPORTING and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPORTING 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.| SPORTING vs. TAL Education Group | SPORTING vs. PARKEN Sport Entertainment | SPORTING vs. Adtalem Global Education | SPORTING vs. DEVRY EDUCATION GRP |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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