Correlation Between MCEWEN MINING and National Storage
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and National Storage 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 National Storage 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 National Storage Affiliates, you can compare the effects of market volatilities on MCEWEN MINING and National Storage 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 National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and National Storage.
Diversification Opportunities for MCEWEN MINING and National Storage
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and National is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and National Storage Affiliates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage Aff 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 National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage Aff has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and National Storage go up and down completely randomly.
Pair Corralation between MCEWEN MINING and National Storage
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.62 times more return on investment than National Storage. However, MCEWEN MINING is 2.62 times more volatile than National Storage Affiliates. It trades about 0.14 of its potential returns per unit of risk. National Storage Affiliates is currently generating about 0.06 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. National Storage Affiliates
Performance |
| Timeline |
| MCEWEN MINING INC |
| National Storage Aff |
MCEWEN MINING and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and National Storage
The main advantage of trading using opposite MCEWEN MINING and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, National Storage 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 National Storage will offset losses from the drop in National Storage'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 |
| National Storage vs. Lifeway Foods | National Storage vs. TYSON FOODS A | National Storage vs. SENECA FOODS A | National Storage vs. MCEWEN MINING INC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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