Correlation Between MCEWEN MINING and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and MOVIE GAMES 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 MOVIE GAMES 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 MOVIE GAMES SA, you can compare the effects of market volatilities on MCEWEN MINING and MOVIE GAMES 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 MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and MOVIE GAMES.
Diversification Opportunities for MCEWEN MINING and MOVIE GAMES
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and MOVIE is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES 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 MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and MOVIE GAMES go up and down completely randomly.
Pair Corralation between MCEWEN MINING and MOVIE GAMES
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 0.99 times more return on investment than MOVIE GAMES. However, MCEWEN MINING INC is 1.01 times less risky than MOVIE GAMES. It trades about -0.06 of its potential returns per unit of risk. MOVIE GAMES SA is currently generating about -0.13 per unit of risk. If you would invest 1,090 in MCEWEN MINING INC on September 2, 2024 and sell it today you would lose (305.00) from holding MCEWEN MINING INC or give up 27.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. MOVIE GAMES SA
Performance |
| Timeline |
| MCEWEN MINING INC |
| MOVIE GAMES SA |
MCEWEN MINING and MOVIE GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and MOVIE GAMES
The main advantage of trading using opposite MCEWEN MINING and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.| MCEWEN MINING vs. LG Electronics | MCEWEN MINING vs. LIFENET INSURANCE CO | MCEWEN MINING vs. STMicroelectronics NV | MCEWEN MINING vs. Electronic Arts |
| MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc | MOVIE GAMES 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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