Correlation Between Xinhua Winshare and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare 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 Xinhua Winshare and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinhua Winshare Publishing and MCEWEN MINING INC, you can compare the effects of market volatilities on Xinhua Winshare 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 Xinhua Winshare with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and MCEWEN MINING.
Diversification Opportunities for Xinhua Winshare and MCEWEN MINING
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinhua and MCEWEN is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing 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 Xinhua Winshare 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 Xinhua Winshare Publishing 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 Xinhua Winshare i.e., Xinhua Winshare and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Xinhua Winshare and MCEWEN MINING
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 0.77 times more return on investment than MCEWEN MINING. However, Xinhua Winshare Publishing is 1.31 times less risky than MCEWEN MINING. It trades about 0.08 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.06 per unit of risk. If you would invest 91.00 in Xinhua Winshare Publishing on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Xinhua Winshare Publishing or generate 24.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. MCEWEN MINING INC
Performance |
| Timeline |
| Xinhua Winshare Publ |
| MCEWEN MINING INC |
Xinhua Winshare and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and MCEWEN MINING
The main advantage of trading using opposite Xinhua Winshare and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare 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.| Xinhua Winshare vs. Superior Plus Corp | Xinhua Winshare vs. NMI Holdings | Xinhua Winshare vs. Origin Agritech | Xinhua Winshare vs. SIVERS SEMICONDUCTORS AB |
| MCEWEN MINING vs. COMMERCIAL VEHICLE | MCEWEN MINING vs. Pick n Pay | MCEWEN MINING vs. PICKN PAY STORES | MCEWEN MINING vs. Commercial Vehicle Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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