Correlation Between MCEWEN MINING and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and MEDICAL FACILITIES 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 MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on MCEWEN MINING and MEDICAL FACILITIES 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 MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and MEDICAL FACILITIES.
Diversification Opportunities for MCEWEN MINING and MEDICAL FACILITIES
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between MCEWEN and MEDICAL is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW 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 MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between MCEWEN MINING and MEDICAL FACILITIES
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.23 times less return on investment than MEDICAL FACILITIES. In addition to that, MCEWEN MINING is 1.51 times more volatile than MEDICAL FACILITIES NEW. It trades about 0.04 of its total potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.07 per unit of volatility. If you would invest 492.00 in MEDICAL FACILITIES NEW on August 25, 2024 and sell it today you would earn a total of 548.00 from holding MEDICAL FACILITIES NEW or generate 111.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| MCEWEN MINING INC |
| MEDICAL FACILITIES NEW |
MCEWEN MINING and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and MEDICAL FACILITIES
The main advantage of trading using opposite MCEWEN MINING and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
| MEDICAL FACILITIES vs. Ramsay Health Care | MEDICAL FACILITIES vs. Superior Plus Corp | MEDICAL FACILITIES vs. NMI Holdings | MEDICAL FACILITIES vs. Origin Agritech |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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