Correlation Between MCEWEN MINING and Hewlett Packard
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Hewlett Packard 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 Hewlett Packard 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 Hewlett Packard Enterprise, you can compare the effects of market volatilities on MCEWEN MINING and Hewlett Packard 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 Hewlett Packard. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Hewlett Packard.
Diversification Opportunities for MCEWEN MINING and Hewlett Packard
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and Hewlett is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Hewlett Packard Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hewlett Packard Ente 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 Hewlett Packard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hewlett Packard Ente has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Hewlett Packard go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Hewlett Packard
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Hewlett Packard. In addition to that, MCEWEN MINING is 1.82 times more volatile than Hewlett Packard Enterprise. It trades about -0.17 of its total potential returns per unit of risk. Hewlett Packard Enterprise is currently generating about -0.25 per unit of volatility. If you would invest 2,169 in Hewlett Packard Enterprise on November 28, 2024 and sell it today you would lose (234.00) from holding Hewlett Packard Enterprise or give up 10.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Hewlett Packard Enterprise
Performance |
| Timeline |
| MCEWEN MINING INC |
| Hewlett Packard Ente |
MCEWEN MINING and Hewlett Packard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Hewlett Packard
The main advantage of trading using opposite MCEWEN MINING and Hewlett Packard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Hewlett Packard 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 Hewlett Packard will offset losses from the drop in Hewlett Packard's long position.| MCEWEN MINING vs. ADDUS HOMECARE | MCEWEN MINING vs. CITY OFFICE REIT | MCEWEN MINING vs. GUILD ESPORTS PLC | MCEWEN MINING vs. CAIRN HOMES EO |
| Hewlett Packard vs. CALTAGIRONE EDITORE | Hewlett Packard vs. Acadia Healthcare Co | Hewlett Packard vs. CARDINAL HEALTH | Hewlett Packard vs. Khiron Life Sciences |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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