Correlation Between MCEWEN MINING and Japan Post
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Japan Post 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 Japan Post 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 Japan Post Insurance, you can compare the effects of market volatilities on MCEWEN MINING and Japan Post 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 Japan Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Japan Post.
Diversification Opportunities for MCEWEN MINING and Japan Post
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Japan is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Japan Post Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Post Insurance 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 Japan Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Post Insurance has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Japan Post go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Japan Post
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Japan Post. In addition to that, MCEWEN MINING is 1.6 times more volatile than Japan Post Insurance. It trades about -0.2 of its total potential returns per unit of risk. Japan Post Insurance is currently generating about 0.53 per unit of volatility. If you would invest 1,500 in Japan Post Insurance on September 1, 2024 and sell it today you would earn a total of 460.00 from holding Japan Post Insurance or generate 30.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Japan Post Insurance
Performance |
| Timeline |
| MCEWEN MINING INC |
| Japan Post Insurance |
MCEWEN MINING and Japan Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Japan Post
The main advantage of trading using opposite MCEWEN MINING and Japan Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Japan Post 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 Japan Post will offset losses from the drop in Japan Post'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 |
| Japan Post vs. Algonquin Power Utilities | Japan Post vs. Goodyear Tire Rubber | Japan Post vs. Caseys General Stores | Japan Post vs. Materialise NV |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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