Correlation Between MCEWEN MINING and Aedas Homes
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Aedas Homes 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 Aedas Homes 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 Aedas Homes SA, you can compare the effects of market volatilities on MCEWEN MINING and Aedas Homes 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 Aedas Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Aedas Homes.
Diversification Opportunities for MCEWEN MINING and Aedas Homes
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and Aedas is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Aedas Homes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aedas Homes SA 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 Aedas Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aedas Homes SA has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Aedas Homes go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Aedas Homes
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Aedas Homes. In addition to that, MCEWEN MINING is 1.41 times more volatile than Aedas Homes SA. It trades about -0.11 of its total potential returns per unit of risk. Aedas Homes SA is currently generating about 0.29 per unit of volatility. If you would invest 2,401 in Aedas Homes SA on October 12, 2024 and sell it today you would earn a total of 234.00 from holding Aedas Homes SA or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Aedas Homes SA
Performance |
| Timeline |
| MCEWEN MINING INC |
| Aedas Homes SA |
MCEWEN MINING and Aedas Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Aedas Homes
The main advantage of trading using opposite MCEWEN MINING and Aedas Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Aedas Homes 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 Aedas Homes will offset losses from the drop in Aedas Homes' long position.| MCEWEN MINING vs. Pentair plc | MCEWEN MINING vs. MOBILE FACTORY INC | MCEWEN MINING vs. SOGECLAIR SA INH | MCEWEN MINING vs. Charter Communications |
| Aedas Homes vs. Seven West Media | Aedas Homes vs. MCEWEN MINING INC | Aedas Homes vs. Townsquare Media | Aedas Homes vs. Forsys Metals Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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