Correlation Between MCEWEN MINING and PayPal Holdings
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and PayPal Holdings 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 PayPal Holdings 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 PayPal Holdings, you can compare the effects of market volatilities on MCEWEN MINING and PayPal Holdings 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 PayPal Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and PayPal Holdings.
Diversification Opportunities for MCEWEN MINING and PayPal Holdings
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and PayPal is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and PayPal Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PayPal Holdings 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 PayPal Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PayPal Holdings has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and PayPal Holdings go up and down completely randomly.
Pair Corralation between MCEWEN MINING and PayPal Holdings
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.25 times less return on investment than PayPal Holdings. In addition to that, MCEWEN MINING is 1.83 times more volatile than PayPal Holdings. It trades about 0.02 of its total potential returns per unit of risk. PayPal Holdings is currently generating about 0.04 per unit of volatility. If you would invest 6,646 in PayPal Holdings on September 12, 2024 and sell it today you would earn a total of 1,884 from holding PayPal Holdings or generate 28.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
MCEWEN MINING INC vs. PayPal Holdings
Performance |
| Timeline |
| MCEWEN MINING INC |
| PayPal Holdings |
MCEWEN MINING and PayPal Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and PayPal Holdings
The main advantage of trading using opposite MCEWEN MINING and PayPal Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, PayPal Holdings 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 PayPal Holdings will offset losses from the drop in PayPal Holdings' long position.| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Norsk Hydro ASA |
| PayPal Holdings vs. Coeur Mining | PayPal Holdings vs. Media and Games | PayPal Holdings vs. MINCO SILVER | PayPal Holdings vs. CI GAMES SA |
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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