Correlation Between TOYO SEIKAN and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both TOYO SEIKAN 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 TOYO SEIKAN and MCEWEN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOYO SEIKAN GRP and MCEWEN MINING INC, you can compare the effects of market volatilities on TOYO SEIKAN 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 TOYO SEIKAN with a short position of MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOYO SEIKAN and MCEWEN MINING.
Diversification Opportunities for TOYO SEIKAN and MCEWEN MINING
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TOYO and MCEWEN is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding TOYO SEIKAN GRP 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 TOYO SEIKAN 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 TOYO SEIKAN GRP 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 TOYO SEIKAN i.e., TOYO SEIKAN and MCEWEN MINING go up and down completely randomly.
Pair Corralation between TOYO SEIKAN and MCEWEN MINING
Assuming the 90 days trading horizon TOYO SEIKAN GRP is expected to generate 0.35 times more return on investment than MCEWEN MINING. However, TOYO SEIKAN GRP is 2.85 times less risky than MCEWEN MINING. It trades about 0.34 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.11 per unit of risk. If you would invest 1,340 in TOYO SEIKAN GRP on September 2, 2024 and sell it today you would earn a total of 130.00 from holding TOYO SEIKAN GRP or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOYO SEIKAN GRP vs. MCEWEN MINING INC
Performance |
| Timeline |
| TOYO SEIKAN GRP |
| MCEWEN MINING INC |
TOYO SEIKAN and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOYO SEIKAN and MCEWEN MINING
The main advantage of trading using opposite TOYO SEIKAN and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOYO SEIKAN 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.| TOYO SEIKAN vs. Playtech plc | TOYO SEIKAN vs. PLAYWAY SA ZY 10 | TOYO SEIKAN vs. PLAYTECH | TOYO SEIKAN vs. Ares Management Corp |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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