Correlation Between MCEWEN MINING and TOREX SEMICONDUCTOR
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR LTD, you can compare the effects of market volatilities on MCEWEN MINING and TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and TOREX SEMICONDUCTOR.
Diversification Opportunities for MCEWEN MINING and TOREX SEMICONDUCTOR
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MCEWEN and TOREX is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and TOREX SEMICONDUCTOR LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOREX SEMICONDUCTOR LTD 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 TOREX SEMICONDUCTOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOREX SEMICONDUCTOR LTD has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and TOREX SEMICONDUCTOR go up and down completely randomly.
Pair Corralation between MCEWEN MINING and TOREX SEMICONDUCTOR
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the TOREX SEMICONDUCTOR. In addition to that, MCEWEN MINING is 1.77 times more volatile than TOREX SEMICONDUCTOR LTD. It trades about -0.2 of its total potential returns per unit of risk. TOREX SEMICONDUCTOR LTD is currently generating about -0.3 per unit of volatility. If you would invest 910.00 in TOREX SEMICONDUCTOR LTD on September 1, 2024 and sell it today you would lose (125.00) from holding TOREX SEMICONDUCTOR LTD or give up 13.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. TOREX SEMICONDUCTOR LTD
Performance |
| Timeline |
| MCEWEN MINING INC |
| TOREX SEMICONDUCTOR LTD |
MCEWEN MINING and TOREX SEMICONDUCTOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and TOREX SEMICONDUCTOR
The main advantage of trading using opposite MCEWEN MINING and TOREX SEMICONDUCTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR will offset losses from the drop in TOREX SEMICONDUCTOR's long position.| MCEWEN MINING vs. COMMERCIAL VEHICLE | MCEWEN MINING vs. Pick n Pay | MCEWEN MINING vs. PICKN PAY STORES | MCEWEN MINING vs. Commercial Vehicle Group |
| TOREX SEMICONDUCTOR vs. NVIDIA | TOREX SEMICONDUCTOR vs. Taiwan Semiconductor Manufacturing | TOREX SEMICONDUCTOR vs. Intel |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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