Correlation Between MCEWEN MINING and BECLE SAB
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and BECLE SAB 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 BECLE SAB 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 BECLE SAB DE, you can compare the effects of market volatilities on MCEWEN MINING and BECLE SAB 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 BECLE SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and BECLE SAB.
Diversification Opportunities for MCEWEN MINING and BECLE SAB
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MCEWEN and BECLE is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and BECLE SAB DE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BECLE SAB DE 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 BECLE SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BECLE SAB DE has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and BECLE SAB go up and down completely randomly.
Pair Corralation between MCEWEN MINING and BECLE SAB
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the BECLE SAB. In addition to that, MCEWEN MINING is 1.08 times more volatile than BECLE SAB DE. It trades about -0.08 of its total potential returns per unit of risk. BECLE SAB DE is currently generating about 0.03 per unit of volatility. If you would invest 118.00 in BECLE SAB DE on September 5, 2024 and sell it today you would earn a total of 1.00 from holding BECLE SAB DE or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
MCEWEN MINING INC vs. BECLE SAB DE
Performance |
| Timeline |
| MCEWEN MINING INC |
| BECLE SAB DE |
MCEWEN MINING and BECLE SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and BECLE SAB
The main advantage of trading using opposite MCEWEN MINING and BECLE SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, BECLE SAB 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 BECLE SAB will offset losses from the drop in BECLE SAB'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 |
| BECLE SAB vs. STORE ELECTRONIC | BECLE SAB vs. METHODE ELECTRONICS | BECLE SAB vs. Benchmark Electronics | BECLE SAB vs. UMC Electronics Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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