Correlation Between Samsung Electronics and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics 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 Samsung Electronics and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and McEwen Mining, you can compare the effects of market volatilities on Samsung Electronics 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 Samsung Electronics with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and McEwen Mining.
Diversification Opportunities for Samsung Electronics and McEwen Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and McEwen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Samsung Electronics 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 Samsung Electronics Co 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 Samsung Electronics i.e., Samsung Electronics and McEwen Mining go up and down completely randomly.
Pair Corralation between Samsung Electronics and McEwen Mining
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the McEwen Mining. In addition to that, Samsung Electronics is 1.0 times more volatile than McEwen Mining. It trades about -0.18 of its total potential returns per unit of risk. McEwen Mining is currently generating about 0.1 per unit of volatility. If you would invest 16,600 in McEwen Mining on November 2, 2024 and sell it today you would earn a total of 3,200 from holding McEwen Mining or generate 19.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. McEwen Mining
Performance |
| Timeline |
| Samsung Electronics |
| McEwen Mining |
Samsung Electronics and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and McEwen Mining
The main advantage of trading using opposite Samsung Electronics and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics 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.| Samsung Electronics vs. KB Home | Samsung Electronics vs. First Majestic Silver | Samsung Electronics vs. Desarrolladora Homex SAB | Samsung Electronics vs. Verizon Communications |
| McEwen Mining vs. Verizon Communications | McEwen Mining vs. Grupo Sports World | McEwen Mining vs. Samsung Electronics Co | McEwen Mining vs. Monster Beverage Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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