Correlation Between FIBRA Storage and McEwen Mining
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By analyzing existing cross correlation between FIBRA Storage and McEwen Mining, you can compare the effects of market volatilities on FIBRA Storage 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 FIBRA Storage with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and McEwen Mining.
Diversification Opportunities for FIBRA Storage and McEwen Mining
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FIBRA and McEwen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and FIBRA Storage 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 FIBRA Storage 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 FIBRA Storage i.e., FIBRA Storage and McEwen Mining go up and down completely randomly.
Pair Corralation between FIBRA Storage and McEwen Mining
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 1.11 times less return on investment than McEwen Mining. But when comparing it to its historical volatility, FIBRA Storage is 1.76 times less risky than McEwen Mining. It trades about 0.2 of its potential returns per unit of risk. McEwen Mining is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 16,600 in McEwen Mining on August 30, 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 | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBRA Storage vs. McEwen Mining
Performance |
| Timeline |
| FIBRA Storage |
| McEwen Mining |
FIBRA Storage and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and McEwen Mining
The main advantage of trading using opposite FIBRA Storage and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage 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.| FIBRA Storage vs. Prudential Financial | FIBRA Storage vs. Monster Beverage Corp | FIBRA Storage vs. New Oriental Education | FIBRA Storage vs. Micron Technology |
| McEwen Mining vs. DXC Technology | McEwen Mining vs. Lloyds Banking Group | McEwen Mining vs. Ross Stores | McEwen Mining vs. Micron Technology |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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