Correlation Between MCEWEN MINING and CITY OFFICE
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and CITY OFFICE 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 CITY OFFICE 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 CITY OFFICE REIT, you can compare the effects of market volatilities on MCEWEN MINING and CITY OFFICE 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 CITY OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and CITY OFFICE.
Diversification Opportunities for MCEWEN MINING and CITY OFFICE
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MCEWEN and CITY is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and CITY OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITY OFFICE REIT 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 CITY OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITY OFFICE REIT has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and CITY OFFICE go up and down completely randomly.
Pair Corralation between MCEWEN MINING and CITY OFFICE
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the CITY OFFICE. In addition to that, MCEWEN MINING is 1.01 times more volatile than CITY OFFICE REIT. It trades about -0.09 of its total potential returns per unit of risk. CITY OFFICE REIT is currently generating about 0.26 per unit of volatility. If you would invest 438.00 in CITY OFFICE REIT on September 4, 2024 and sell it today you would earn a total of 87.00 from holding CITY OFFICE REIT or generate 19.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. CITY OFFICE REIT
Performance |
| Timeline |
| MCEWEN MINING INC |
| CITY OFFICE REIT |
MCEWEN MINING and CITY OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and CITY OFFICE
The main advantage of trading using opposite MCEWEN MINING and CITY OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, CITY OFFICE 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 CITY OFFICE will offset losses from the drop in CITY OFFICE's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
| CITY OFFICE vs. Boston Properties | CITY OFFICE vs. COUSINS PTIES INC | CITY OFFICE vs. Office Properties Income |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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