Correlation Between MCEWEN MINING and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Aegean Airlines 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 Aegean Airlines 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 Aegean Airlines SA, you can compare the effects of market volatilities on MCEWEN MINING and Aegean Airlines 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 Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Aegean Airlines.
Diversification Opportunities for MCEWEN MINING and Aegean Airlines
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and Aegean is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines 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 Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Aegean Airlines go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Aegean Airlines
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.15 times less return on investment than Aegean Airlines. In addition to that, MCEWEN MINING is 1.6 times more volatile than Aegean Airlines SA. It trades about 0.04 of its total potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.07 per unit of volatility. If you would invest 493.00 in Aegean Airlines SA on September 13, 2024 and sell it today you would earn a total of 512.00 from holding Aegean Airlines SA or generate 103.85% 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. Aegean Airlines SA
Performance |
| Timeline |
| MCEWEN MINING INC |
| Aegean Airlines SA |
MCEWEN MINING and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Aegean Airlines
The main advantage of trading using opposite MCEWEN MINING and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' 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 |
| Aegean Airlines vs. RYANAIR HLDGS ADR | Aegean Airlines vs. Ryanair Holdings plc | Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. SIVERS SEMICONDUCTORS AB |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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