Correlation Between MCEWEN MINING and VITEC SOFTWARE
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and VITEC SOFTWARE 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 VITEC SOFTWARE 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 VITEC SOFTWARE GROUP, you can compare the effects of market volatilities on MCEWEN MINING and VITEC SOFTWARE 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 VITEC SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and VITEC SOFTWARE.
Diversification Opportunities for MCEWEN MINING and VITEC SOFTWARE
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and VITEC is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and VITEC SOFTWARE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VITEC SOFTWARE 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 VITEC SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VITEC SOFTWARE GROUP has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and VITEC SOFTWARE go up and down completely randomly.
Pair Corralation between MCEWEN MINING and VITEC SOFTWARE
Assuming the 90 days horizon MCEWEN MINING is expected to generate 4.65 times less return on investment than VITEC SOFTWARE. In addition to that, MCEWEN MINING is 2.23 times more volatile than VITEC SOFTWARE GROUP. It trades about 0.02 of its total potential returns per unit of risk. VITEC SOFTWARE GROUP is currently generating about 0.25 per unit of volatility. If you would invest 4,058 in VITEC SOFTWARE GROUP on September 17, 2024 and sell it today you would earn a total of 348.00 from holding VITEC SOFTWARE GROUP or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MCEWEN MINING INC vs. VITEC SOFTWARE GROUP
Performance |
| Timeline |
| MCEWEN MINING INC |
| VITEC SOFTWARE GROUP |
MCEWEN MINING and VITEC SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and VITEC SOFTWARE
The main advantage of trading using opposite MCEWEN MINING and VITEC SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, VITEC SOFTWARE 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 VITEC SOFTWARE will offset losses from the drop in VITEC SOFTWARE's long position.| MCEWEN MINING vs. MOLSON RS BEVERAGE | MCEWEN MINING vs. Sabre Insurance Group | MCEWEN MINING vs. Tsingtao Brewery | MCEWEN MINING vs. Goosehead Insurance |
| VITEC SOFTWARE vs. Apple Inc | VITEC SOFTWARE vs. Apple Inc | VITEC SOFTWARE vs. Apple Inc | VITEC SOFTWARE vs. Apple Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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