Correlation Between MCEWEN MINING and Western Copper
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Western Copper 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 Western Copper 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 Western Copper and, you can compare the effects of market volatilities on MCEWEN MINING and Western Copper 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 Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Western Copper.
Diversification Opportunities for MCEWEN MINING and Western Copper
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and Western is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper 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 Western Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Copper has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Western Copper go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Western Copper
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.25 times more return on investment than Western Copper. However, MCEWEN MINING is 1.25 times more volatile than Western Copper and. It trades about 0.03 of its potential returns per unit of risk. Western Copper and is currently generating about -0.02 per unit of risk. If you would invest 620.00 in MCEWEN MINING INC on October 20, 2024 and sell it today you would earn a total of 190.00 from holding MCEWEN MINING INC or generate 30.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Western Copper and
Performance |
| Timeline |
| MCEWEN MINING INC |
| Western Copper |
MCEWEN MINING and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Western Copper
The main advantage of trading using opposite MCEWEN MINING and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Western Copper 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 Western Copper will offset losses from the drop in Western Copper's long position.| MCEWEN MINING vs. Canon Marketing Japan | MCEWEN MINING vs. FLOW TRADERS LTD | MCEWEN MINING vs. RETAIL FOOD GROUP | MCEWEN MINING vs. MARKET VECTR RETAIL |
| Western Copper vs. X FAB Silicon Foundries | Western Copper vs. SILICON LABORATOR | Western Copper vs. TRI CHEMICAL LABORATINC | Western Copper vs. Siamgas And Petrochemicals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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