Correlation Between MCEWEN MINING and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Corsair 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 Corsair 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 Corsair Gaming, you can compare the effects of market volatilities on MCEWEN MINING and Corsair 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 Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Corsair Gaming.
Diversification Opportunities for MCEWEN MINING and Corsair Gaming
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Corsair is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming 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 Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Corsair Gaming go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Corsair Gaming
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.31 times more return on investment than Corsair Gaming. However, MCEWEN MINING is 1.31 times more volatile than Corsair Gaming. It trades about 0.04 of its potential returns per unit of risk. Corsair Gaming is currently generating about -0.02 per unit of risk. If you would invest 555.00 in MCEWEN MINING INC on September 13, 2024 and sell it today you would earn a total of 300.00 from holding MCEWEN MINING INC or generate 54.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Corsair Gaming
Performance |
| Timeline |
| MCEWEN MINING INC |
| Corsair Gaming |
MCEWEN MINING and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Corsair Gaming
The main advantage of trading using opposite MCEWEN MINING and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Corsair 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Norsk Hydro ASA |
| Corsair Gaming vs. Datalogic SpA | Corsair Gaming vs. Superior Plus Corp | Corsair Gaming vs. SIVERS SEMICONDUCTORS AB | Corsair Gaming vs. NorAm Drilling AS |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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