Correlation Between MCEWEN MINING and Universal Insurance
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Universal Insurance 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 Universal Insurance 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 Universal Insurance Holdings, you can compare the effects of market volatilities on MCEWEN MINING and Universal Insurance 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 Universal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Universal Insurance.
Diversification Opportunities for MCEWEN MINING and Universal Insurance
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Universal is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Universal Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Insurance 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 Universal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Insurance has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Universal Insurance go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Universal Insurance
Assuming the 90 days horizon MCEWEN MINING is expected to generate 5.04 times less return on investment than Universal Insurance. In addition to that, MCEWEN MINING is 1.3 times more volatile than Universal Insurance Holdings. It trades about 0.01 of its total potential returns per unit of risk. Universal Insurance Holdings is currently generating about 0.04 per unit of volatility. If you would invest 1,672 in Universal Insurance Holdings on October 30, 2024 and sell it today you would earn a total of 168.00 from holding Universal Insurance Holdings or generate 10.05% 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. Universal Insurance Holdings
Performance |
| Timeline |
| MCEWEN MINING INC |
| Universal Insurance |
MCEWEN MINING and Universal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Universal Insurance
The main advantage of trading using opposite MCEWEN MINING and Universal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Universal Insurance 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 Universal Insurance will offset losses from the drop in Universal Insurance's long position.| MCEWEN MINING vs. CAL MAINE FOODS | MCEWEN MINING vs. RYANAIR HLDGS ADR | MCEWEN MINING vs. United Natural Foods | MCEWEN MINING vs. PREMIER FOODS |
| Universal Insurance vs. The Japan Steel | Universal Insurance vs. Synchrony Financial | Universal Insurance vs. CHAMPION IRON | Universal Insurance vs. Webster Financial |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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