Correlation Between Tatton Asset and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Tatton Asset 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 Tatton Asset and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tatton Asset Management and McEwen Mining, you can compare the effects of market volatilities on Tatton Asset 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 Tatton Asset with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tatton Asset and McEwen Mining.
Diversification Opportunities for Tatton Asset and McEwen Mining
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tatton and McEwen is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Tatton Asset Management and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Tatton Asset 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 Tatton Asset Management 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 Tatton Asset i.e., Tatton Asset and McEwen Mining go up and down completely randomly.
Pair Corralation between Tatton Asset and McEwen Mining
Assuming the 90 days trading horizon Tatton Asset Management is expected to generate 0.56 times more return on investment than McEwen Mining. However, Tatton Asset Management is 1.77 times less risky than McEwen Mining. It trades about 0.07 of its potential returns per unit of risk. McEwen Mining is currently generating about -0.07 per unit of risk. If you would invest 60,056 in Tatton Asset Management on September 1, 2024 and sell it today you would earn a total of 9,344 from holding Tatton Asset Management or generate 15.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.23% |
| Values | Daily Returns |
Tatton Asset Management vs. McEwen Mining
Performance |
| Timeline |
| Tatton Asset Management |
| McEwen Mining |
Tatton Asset and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tatton Asset and McEwen Mining
The main advantage of trading using opposite Tatton Asset and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tatton Asset 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.| Tatton Asset vs. Fevertree Drinks Plc | Tatton Asset vs. Ross Stores | Tatton Asset vs. Compagnie Plastic Omnium | Tatton Asset vs. Impax Environmental Markets |
| McEwen Mining vs. Pfeiffer Vacuum Technology | McEwen Mining vs. Spotify Technology SA | McEwen Mining vs. Check Point Software | McEwen Mining vs. Albion Technology General |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |