Correlation Between MCEWEN MINING and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and FRACTAL GAMING 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 FRACTAL GAMING 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 FRACTAL GAMING GROUP, you can compare the effects of market volatilities on MCEWEN MINING and FRACTAL GAMING 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 FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and FRACTAL GAMING.
Diversification Opportunities for MCEWEN MINING and FRACTAL GAMING
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MCEWEN and FRACTAL is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and FRACTAL GAMING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRACTAL GAMING GROUP 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 FRACTAL GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRACTAL GAMING GROUP has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between MCEWEN MINING and FRACTAL GAMING
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the FRACTAL GAMING. In addition to that, MCEWEN MINING is 1.95 times more volatile than FRACTAL GAMING GROUP. It trades about -0.08 of its total potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about 0.01 per unit of volatility. If you would invest 292.00 in FRACTAL GAMING GROUP on October 26, 2024 and sell it today you would lose (1.00) from holding FRACTAL GAMING GROUP or give up 0.34% 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. FRACTAL GAMING GROUP
Performance |
| Timeline |
| MCEWEN MINING INC |
| FRACTAL GAMING GROUP |
MCEWEN MINING and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and FRACTAL GAMING
The main advantage of trading using opposite MCEWEN MINING and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, FRACTAL GAMING 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 FRACTAL GAMING will offset losses from the drop in FRACTAL GAMING's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. Identiv | MCEWEN MINING vs. INTUITIVE SURGICAL |
| FRACTAL GAMING vs. ANGLO ASIAN MINING | FRACTAL GAMING vs. Endeavour Mining PLC | FRACTAL GAMING vs. PURETECH HEALTH PLC | FRACTAL GAMING vs. US Physical Therapy |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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