Correlation Between MCEWEN MINING and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and REGAL ASIAN 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 REGAL ASIAN 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 REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on MCEWEN MINING and REGAL ASIAN 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 REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and REGAL ASIAN.
Diversification Opportunities for MCEWEN MINING and REGAL ASIAN
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MCEWEN and REGAL is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS 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 REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and REGAL ASIAN go up and down completely randomly.
Pair Corralation between MCEWEN MINING and REGAL ASIAN
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.99 times more return on investment than REGAL ASIAN. However, MCEWEN MINING is 1.99 times more volatile than REGAL ASIAN INVESTMENTS. It trades about -0.01 of its potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about -0.04 per unit of risk. If you would invest 845.00 in MCEWEN MINING INC on September 27, 2024 and sell it today you would lose (85.00) from holding MCEWEN MINING INC or give up 10.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| MCEWEN MINING INC |
| REGAL ASIAN INVESTMENTS |
MCEWEN MINING and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and REGAL ASIAN
The main advantage of trading using opposite MCEWEN MINING and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, REGAL ASIAN 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 REGAL ASIAN will offset losses from the drop in REGAL ASIAN's long position.| MCEWEN MINING vs. Fresnillo plc | MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. THARISA NON LIST | MCEWEN MINING vs. Gemfields Group Limited |
| REGAL ASIAN vs. Coeur Mining | REGAL ASIAN vs. MCEWEN MINING INC | REGAL ASIAN vs. BOS BETTER ONLINE | REGAL ASIAN vs. Harmony Gold Mining |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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