Correlation Between MCEWEN MINING and Industrias Penoles
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Industrias Penoles 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 Industrias Penoles 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 Industrias Penoles Sab, you can compare the effects of market volatilities on MCEWEN MINING and Industrias Penoles 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 Industrias Penoles. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Industrias Penoles.
Diversification Opportunities for MCEWEN MINING and Industrias Penoles
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between MCEWEN and Industrias is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Industrias Penoles Sab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrias Penoles Sab 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 Industrias Penoles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrias Penoles Sab has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Industrias Penoles go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Industrias Penoles
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 0.88 times more return on investment than Industrias Penoles. However, MCEWEN MINING INC is 1.14 times less risky than Industrias Penoles. It trades about 0.17 of its potential returns per unit of risk. Industrias Penoles Sab is currently generating about 0.07 per unit of risk. If you would invest 760.00 in MCEWEN MINING INC on October 24, 2024 and sell it today you would earn a total of 55.00 from holding MCEWEN MINING INC or generate 7.24% 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. Industrias Penoles Sab
Performance |
| Timeline |
| MCEWEN MINING INC |
| Industrias Penoles Sab |
MCEWEN MINING and Industrias Penoles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Industrias Penoles
The main advantage of trading using opposite MCEWEN MINING and Industrias Penoles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Industrias Penoles 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 Industrias Penoles will offset losses from the drop in Industrias Penoles' long position.| MCEWEN MINING vs. bet at home AG | MCEWEN MINING vs. Corporate Office Properties | MCEWEN MINING vs. Haverty Furniture Companies | MCEWEN MINING vs. MOUNT GIBSON IRON |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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