Correlation Between MCEWEN MINING and HYATT HOTELS-A
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and HYATT HOTELS-A 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 HYATT HOTELS-A 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 HYATT HOTELS A, you can compare the effects of market volatilities on MCEWEN MINING and HYATT HOTELS-A 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 HYATT HOTELS-A. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and HYATT HOTELS-A.
Diversification Opportunities for MCEWEN MINING and HYATT HOTELS-A
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and HYATT is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and HYATT HOTELS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYATT HOTELS A 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 HYATT HOTELS-A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYATT HOTELS A has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and HYATT HOTELS-A go up and down completely randomly.
Pair Corralation between MCEWEN MINING and HYATT HOTELS-A
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.06 times more return on investment than HYATT HOTELS-A. However, MCEWEN MINING is 2.06 times more volatile than HYATT HOTELS A. It trades about 0.04 of its potential returns per unit of risk. HYATT HOTELS A is currently generating about 0.06 per unit of risk. If you would invest 510.00 in MCEWEN MINING INC on August 27, 2024 and sell it today you would earn a total of 310.00 from holding MCEWEN MINING INC or generate 60.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. HYATT HOTELS A
Performance |
| Timeline |
| MCEWEN MINING INC |
| HYATT HOTELS A |
MCEWEN MINING and HYATT HOTELS-A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and HYATT HOTELS-A
The main advantage of trading using opposite MCEWEN MINING and HYATT HOTELS-A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, HYATT HOTELS-A 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 HYATT HOTELS-A will offset losses from the drop in HYATT HOTELS-A's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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