Correlation Between MCEWEN MINING and PPHE HOTEL
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and PPHE HOTEL 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 PPHE HOTEL 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 PPHE HOTEL GROUP, you can compare the effects of market volatilities on MCEWEN MINING and PPHE HOTEL 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 PPHE HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and PPHE HOTEL.
Diversification Opportunities for MCEWEN MINING and PPHE HOTEL
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and PPHE is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and PPHE HOTEL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPHE HOTEL GROUP 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 PPHE HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPHE HOTEL GROUP has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and PPHE HOTEL go up and down completely randomly.
Pair Corralation between MCEWEN MINING and PPHE HOTEL
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the PPHE HOTEL. In addition to that, MCEWEN MINING is 3.05 times more volatile than PPHE HOTEL GROUP. It trades about -0.2 of its total potential returns per unit of risk. PPHE HOTEL GROUP is currently generating about -0.05 per unit of volatility. If you would invest 1,440 in PPHE HOTEL GROUP on September 1, 2024 and sell it today you would lose (20.00) from holding PPHE HOTEL GROUP or give up 1.39% 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. PPHE HOTEL GROUP
Performance |
| Timeline |
| MCEWEN MINING INC |
| PPHE HOTEL GROUP |
MCEWEN MINING and PPHE HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and PPHE HOTEL
The main advantage of trading using opposite MCEWEN MINING and PPHE HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, PPHE HOTEL 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 PPHE HOTEL will offset losses from the drop in PPHE HOTEL's long position.| MCEWEN MINING vs. COMMERCIAL VEHICLE | MCEWEN MINING vs. Pick n Pay | MCEWEN MINING vs. PICKN PAY STORES | MCEWEN MINING vs. Commercial Vehicle Group |
| PPHE HOTEL vs. SIVERS SEMICONDUCTORS AB | PPHE HOTEL vs. Darden Restaurants | PPHE HOTEL vs. Reliance Steel Aluminum | PPHE HOTEL vs. Q2M Managementberatung AG |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |