Correlation Between MCEWEN MINING and Firan Technology
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Firan Technology 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 Firan Technology 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 Firan Technology Group, you can compare the effects of market volatilities on MCEWEN MINING and Firan Technology 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 Firan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Firan Technology.
Diversification Opportunities for MCEWEN MINING and Firan Technology
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MCEWEN and Firan is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology 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 Firan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firan Technology has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Firan Technology go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Firan Technology
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.55 times more return on investment than Firan Technology. However, MCEWEN MINING is 2.55 times more volatile than Firan Technology Group. It trades about 0.17 of its potential returns per unit of risk. Firan Technology Group is currently generating about 0.13 per unit of risk. If you would invest 760.00 in MCEWEN MINING INC on October 24, 2024 and sell it today you would earn a total of 55.00 from holding MCEWEN MINING INC or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Firan Technology Group
Performance |
| Timeline |
| MCEWEN MINING INC |
| Firan Technology |
MCEWEN MINING and Firan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Firan Technology
The main advantage of trading using opposite MCEWEN MINING and Firan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Firan Technology 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 Firan Technology will offset losses from the drop in Firan Technology's long position.| MCEWEN MINING vs. bet at home AG | MCEWEN MINING vs. Corporate Office Properties | MCEWEN MINING vs. Haverty Furniture Companies | MCEWEN MINING vs. MOUNT GIBSON IRON |
| Firan Technology vs. Apple Inc | Firan Technology vs. Apple Inc | Firan Technology vs. Apple Inc | Firan Technology vs. Apple Inc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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