Correlation Between MCEWEN MINING and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING 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 PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on MCEWEN MINING and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and PLAYTIKA HOLDING.
Diversification Opportunities for MCEWEN MINING and PLAYTIKA HOLDING
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and PLAYTIKA is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTIKA HOLDING has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between MCEWEN MINING and PLAYTIKA HOLDING
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.08 times more return on investment than PLAYTIKA HOLDING. However, MCEWEN MINING is 1.08 times more volatile than PLAYTIKA HOLDING DL 01. It trades about -0.11 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about -0.27 per unit of risk. If you would invest 855.00 in MCEWEN MINING INC on October 12, 2024 and sell it today you would lose (50.00) from holding MCEWEN MINING INC or give up 5.85% 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. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| MCEWEN MINING INC |
| PLAYTIKA HOLDING |
MCEWEN MINING and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and PLAYTIKA HOLDING
The main advantage of trading using opposite MCEWEN MINING and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, PLAYTIKA HOLDING 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 PLAYTIKA HOLDING will offset losses from the drop in PLAYTIKA HOLDING's long position.| MCEWEN MINING vs. Pentair plc | MCEWEN MINING vs. MOBILE FACTORY INC | MCEWEN MINING vs. SOGECLAIR SA INH | MCEWEN MINING vs. Charter Communications |
| PLAYTIKA HOLDING vs. Keck Seng Investments | PLAYTIKA HOLDING vs. VARIOUS EATERIES LS | PLAYTIKA HOLDING vs. Tencent Music Entertainment | PLAYTIKA HOLDING vs. SEI INVESTMENTS |
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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