Correlation Between MCEWEN MINING and GRUPO CARSO-A1
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and GRUPO CARSO-A1 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 GRUPO CARSO-A1 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 GRUPO CARSO A1, you can compare the effects of market volatilities on MCEWEN MINING and GRUPO CARSO-A1 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 GRUPO CARSO-A1. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and GRUPO CARSO-A1.
Diversification Opportunities for MCEWEN MINING and GRUPO CARSO-A1
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MCEWEN and GRUPO is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and GRUPO CARSO A1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO CARSO A1 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 GRUPO CARSO-A1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO CARSO A1 has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and GRUPO CARSO-A1 go up and down completely randomly.
Pair Corralation between MCEWEN MINING and GRUPO CARSO-A1
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the GRUPO CARSO-A1. But the stock apears to be less risky and, when comparing its historical volatility, MCEWEN MINING INC is 1.2 times less risky than GRUPO CARSO-A1. The stock trades about -0.19 of its potential returns per unit of risk. The GRUPO CARSO A1 is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 535.00 in GRUPO CARSO A1 on September 1, 2024 and sell it today you would earn a total of 30.00 from holding GRUPO CARSO A1 or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. GRUPO CARSO A1
Performance |
| Timeline |
| MCEWEN MINING INC |
| GRUPO CARSO A1 |
MCEWEN MINING and GRUPO CARSO-A1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and GRUPO CARSO-A1
The main advantage of trading using opposite MCEWEN MINING and GRUPO CARSO-A1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, GRUPO CARSO-A1 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 GRUPO CARSO-A1 will offset losses from the drop in GRUPO CARSO-A1'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 |
| GRUPO CARSO-A1 vs. CarsalesCom | GRUPO CARSO-A1 vs. Elmos Semiconductor SE | GRUPO CARSO-A1 vs. BE Semiconductor Industries | GRUPO CARSO-A1 vs. INTER CARS SA |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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