Correlation Between MCEWEN MINING and GPT
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and GPT 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 GPT 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 GPT Group, you can compare the effects of market volatilities on MCEWEN MINING and GPT 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 GPT. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and GPT.
Diversification Opportunities for MCEWEN MINING and GPT
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MCEWEN and GPT is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and GPT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPT 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 GPT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPT Group has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and GPT go up and down completely randomly.
Pair Corralation between MCEWEN MINING and GPT
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.42 times more return on investment than GPT. However, MCEWEN MINING is 1.42 times more volatile than GPT Group. It trades about 0.14 of its potential returns per unit of risk. GPT Group is currently generating about -0.02 per unit of risk. If you would invest 780.00 in MCEWEN MINING INC on September 14, 2024 and sell it today you would earn a total of 75.00 from holding MCEWEN MINING INC or generate 9.62% 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. GPT Group
Performance |
| Timeline |
| MCEWEN MINING INC |
| GPT Group |
MCEWEN MINING and GPT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and GPT
The main advantage of trading using opposite MCEWEN MINING and GPT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, GPT 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 GPT will offset losses from the drop in GPT's 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 |
| GPT vs. MCEWEN MINING INC | GPT vs. PPHE HOTEL GROUP | GPT vs. Pebblebrook Hotel Trust | GPT vs. Meli Hotels International |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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