Correlation Between MCEWEN MINING and SYSTEMAIR
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and SYSTEMAIR 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 SYSTEMAIR 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 SYSTEMAIR AB, you can compare the effects of market volatilities on MCEWEN MINING and SYSTEMAIR 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 SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and SYSTEMAIR.
Diversification Opportunities for MCEWEN MINING and SYSTEMAIR
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and SYSTEMAIR is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB 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 SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and SYSTEMAIR go up and down completely randomly.
Pair Corralation between MCEWEN MINING and SYSTEMAIR
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the SYSTEMAIR. In addition to that, MCEWEN MINING is 2.2 times more volatile than SYSTEMAIR AB. It trades about -0.2 of its total potential returns per unit of risk. SYSTEMAIR AB is currently generating about 0.32 per unit of volatility. If you would invest 694.00 in SYSTEMAIR AB on September 1, 2024 and sell it today you would earn a total of 88.00 from holding SYSTEMAIR AB or generate 12.68% 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. SYSTEMAIR AB
Performance |
| Timeline |
| MCEWEN MINING INC |
| SYSTEMAIR AB |
MCEWEN MINING and SYSTEMAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and SYSTEMAIR
The main advantage of trading using opposite MCEWEN MINING and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR'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 |
| SYSTEMAIR vs. CeoTronics AG | SYSTEMAIR vs. Check Point Software | SYSTEMAIR vs. Ares Management Corp | SYSTEMAIR vs. X Fab Silicon |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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