Correlation Between MCEWEN MINING and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and XLMedia PLC 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 XLMedia PLC 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 XLMedia PLC, you can compare the effects of market volatilities on MCEWEN MINING and XLMedia PLC 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 XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and XLMedia PLC.
Diversification Opportunities for MCEWEN MINING and XLMedia PLC
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and XLMedia is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC 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 XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and XLMedia PLC go up and down completely randomly.
Pair Corralation between MCEWEN MINING and XLMedia PLC
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the XLMedia PLC. But the stock apears to be less risky and, when comparing its historical volatility, MCEWEN MINING INC is 1.94 times less risky than XLMedia PLC. The stock trades about -0.11 of its potential returns per unit of risk. The XLMedia PLC is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 13.00 in XLMedia PLC on October 1, 2024 and sell it today you would lose (3.15) from holding XLMedia PLC or give up 24.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. XLMedia PLC
Performance |
| Timeline |
| MCEWEN MINING INC |
| XLMedia PLC |
MCEWEN MINING and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and XLMedia PLC
The main advantage of trading using opposite MCEWEN MINING and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| MCEWEN MINING vs. Microchip Technology Incorporated | MCEWEN MINING vs. ULTRA CLEAN HLDGS | MCEWEN MINING vs. Align Technology | MCEWEN MINING vs. Carnegie Clean Energy |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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