Correlation Between Thermo Fisher and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Thermo Fisher 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 Thermo Fisher and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermo Fisher Scientific and MCEWEN MINING INC, you can compare the effects of market volatilities on Thermo Fisher 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 Thermo Fisher with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermo Fisher and MCEWEN MINING.
Diversification Opportunities for Thermo Fisher and MCEWEN MINING
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thermo and MCEWEN is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Thermo Fisher Scientific 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 Thermo Fisher 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 Thermo Fisher Scientific 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 Thermo Fisher i.e., Thermo Fisher and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Thermo Fisher and MCEWEN MINING
Assuming the 90 days horizon Thermo Fisher Scientific is expected to generate 0.42 times more return on investment than MCEWEN MINING. However, Thermo Fisher Scientific is 2.39 times less risky than MCEWEN MINING. It trades about -0.11 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.05 per unit of risk. If you would invest 55,310 in Thermo Fisher Scientific on September 13, 2024 and sell it today you would lose (4,290) from holding Thermo Fisher Scientific or give up 7.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermo Fisher Scientific vs. MCEWEN MINING INC
Performance |
| Timeline |
| Thermo Fisher Scientific |
| MCEWEN MINING INC |
Thermo Fisher and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermo Fisher and MCEWEN MINING
The main advantage of trading using opposite Thermo Fisher and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermo Fisher 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.| Thermo Fisher vs. TYSON FOODS A | Thermo Fisher vs. COFCO Joycome Foods | Thermo Fisher vs. Infrastrutture Wireless Italiane | Thermo Fisher vs. Ebro Foods SA |
| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Norsk Hydro ASA |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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