Correlation Between MCEWEN MINING and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Apollo Investment 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 Apollo Investment 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 Apollo Investment Corp, you can compare the effects of market volatilities on MCEWEN MINING and Apollo Investment 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 Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Apollo Investment.
Diversification Opportunities for MCEWEN MINING and Apollo Investment
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Apollo is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp 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 Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Apollo Investment go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Apollo Investment
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.87 times more return on investment than Apollo Investment. However, MCEWEN MINING is 1.87 times more volatile than Apollo Investment Corp. It trades about 0.1 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.08 per unit of risk. If you would invest 785.00 in MCEWEN MINING INC on November 7, 2024 and sell it today you would earn a total of 35.00 from holding MCEWEN MINING INC or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Apollo Investment Corp
Performance |
| Timeline |
| MCEWEN MINING INC |
| Apollo Investment Corp |
MCEWEN MINING and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Apollo Investment
The main advantage of trading using opposite MCEWEN MINING and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Apollo Investment 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 Apollo Investment will offset losses from the drop in Apollo Investment's long position.| MCEWEN MINING vs. Addtech AB | MCEWEN MINING vs. PT Steel Pipe | MCEWEN MINING vs. Tianjin Capital Environmental | MCEWEN MINING vs. ELL ENVIRONHLDGS HD 0001 |
| Apollo Investment vs. FAST RETAIL ADR | Apollo Investment vs. Fast Retailing Co | Apollo Investment vs. Universal Health Realty | Apollo Investment vs. Retail Estates 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |