Correlation Between MCEWEN MINING and COFCO Joycome
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and COFCO Joycome 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 MCEWEN MINING and COFCO Joycome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCEWEN MINING INC and COFCO Joycome Foods, you can compare the effects of market volatilities on MCEWEN MINING and COFCO Joycome 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 MCEWEN MINING with a short position of COFCO Joycome. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and COFCO Joycome.
Diversification Opportunities for MCEWEN MINING and COFCO Joycome
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and COFCO is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and COFCO Joycome Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFCO Joycome Foods and MCEWEN MINING 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 MCEWEN MINING INC are associated (or correlated) with COFCO Joycome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFCO Joycome Foods has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and COFCO Joycome go up and down completely randomly.
Pair Corralation between MCEWEN MINING and COFCO Joycome
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.01 times more return on investment than COFCO Joycome. However, MCEWEN MINING is 1.01 times more volatile than COFCO Joycome Foods. It trades about 0.01 of its potential returns per unit of risk. COFCO Joycome Foods is currently generating about -0.03 per unit of risk. If you would invest 820.00 in MCEWEN MINING INC on October 19, 2024 and sell it today you would lose (10.00) from holding MCEWEN MINING INC or give up 1.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. COFCO Joycome Foods
Performance |
| Timeline |
| MCEWEN MINING INC |
| COFCO Joycome Foods |
MCEWEN MINING and COFCO Joycome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and COFCO Joycome
The main advantage of trading using opposite MCEWEN MINING and COFCO Joycome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, COFCO Joycome 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 COFCO Joycome will offset losses from the drop in COFCO Joycome's long position.| MCEWEN MINING vs. Canon Marketing Japan | MCEWEN MINING vs. FLOW TRADERS LTD | MCEWEN MINING vs. RETAIL FOOD GROUP | MCEWEN MINING vs. MARKET VECTR RETAIL |
| COFCO Joycome vs. Sun Life Financial | COFCO Joycome vs. REVO INSURANCE SPA | COFCO Joycome vs. SINGAPORE AIRLINES | COFCO Joycome vs. International Consolidated Airlines |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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