Correlation Between Silver Mines and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Silver Mines 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 Silver Mines and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Mines Limited and MCEWEN MINING INC, you can compare the effects of market volatilities on Silver Mines 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 Silver Mines with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Mines and MCEWEN MINING.
Diversification Opportunities for Silver Mines and MCEWEN MINING
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silver and MCEWEN is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Silver Mines Limited 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 Silver Mines 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 Silver Mines Limited 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 Silver Mines i.e., Silver Mines and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Silver Mines and MCEWEN MINING
Assuming the 90 days horizon Silver Mines Limited is expected to under-perform the MCEWEN MINING. In addition to that, Silver Mines is 1.79 times more volatile than MCEWEN MINING INC. It trades about -0.15 of its total potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.13 per unit of volatility. If you would invest 865.00 in MCEWEN MINING INC on October 13, 2024 and sell it today you would lose (60.00) from holding MCEWEN MINING INC or give up 6.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver Mines Limited vs. MCEWEN MINING INC
Performance |
| Timeline |
| Silver Mines Limited |
| MCEWEN MINING INC |
Silver Mines and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Mines and MCEWEN MINING
The main advantage of trading using opposite Silver Mines and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Mines 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.| Silver Mines vs. MCEWEN MINING INC | Silver Mines vs. TEXAS ROADHOUSE | Silver Mines vs. FIREWEED METALS P | Silver Mines vs. Broadcom |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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