Correlation Between Symphony Environmental and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Symphony Environmental 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 Symphony Environmental and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Symphony Environmental Technologies and McEwen Mining, you can compare the effects of market volatilities on Symphony Environmental 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 Symphony Environmental with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Environmental and McEwen Mining.
Diversification Opportunities for Symphony Environmental and McEwen Mining
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Symphony and McEwen is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Environmental Technol and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Symphony Environmental 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 Symphony Environmental Technologies 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 Symphony Environmental i.e., Symphony Environmental and McEwen Mining go up and down completely randomly.
Pair Corralation between Symphony Environmental and McEwen Mining
Assuming the 90 days trading horizon Symphony Environmental Technologies is expected to under-perform the McEwen Mining. In addition to that, Symphony Environmental is 1.09 times more volatile than McEwen Mining. It trades about -0.12 of its total potential returns per unit of risk. McEwen Mining is currently generating about -0.05 per unit of volatility. If you would invest 866.00 in McEwen Mining on September 20, 2024 and sell it today you would lose (40.00) from holding McEwen Mining or give up 4.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symphony Environmental Technol vs. McEwen Mining
Performance |
| Timeline |
| Symphony Environmental |
| McEwen Mining |
Symphony Environmental and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Environmental and McEwen Mining
The main advantage of trading using opposite Symphony Environmental and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Environmental 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.| Symphony Environmental vs. Atalaya Mining | Symphony Environmental vs. Central Asia Metals | Symphony Environmental vs. Metals Exploration Plc | Symphony Environmental vs. SANTANDER UK 10 |
| McEwen Mining vs. Playtech Plc | McEwen Mining vs. Ebro Foods | McEwen Mining vs. Celebrus Technologies plc | McEwen Mining vs. Symphony Environmental Technologies |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets |