Correlation Between MCEWEN MINING and Calbee
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Calbee 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 Calbee 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 Calbee Inc, you can compare the effects of market volatilities on MCEWEN MINING and Calbee 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 Calbee. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Calbee.
Diversification Opportunities for MCEWEN MINING and Calbee
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MCEWEN and Calbee is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Calbee Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calbee Inc 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 Calbee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calbee Inc has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Calbee go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Calbee
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.52 times more return on investment than Calbee. However, MCEWEN MINING is 1.52 times more volatile than Calbee Inc. It trades about 0.13 of its potential returns per unit of risk. Calbee Inc is currently generating about -0.22 per unit of risk. If you would invest 765.00 in MCEWEN MINING INC on October 21, 2024 and sell it today you would earn a total of 40.00 from holding MCEWEN MINING INC or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Calbee Inc
Performance |
| Timeline |
| MCEWEN MINING INC |
| Calbee Inc |
MCEWEN MINING and Calbee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Calbee
The main advantage of trading using opposite MCEWEN MINING and Calbee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Calbee 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 Calbee will offset losses from the drop in Calbee's long position.| MCEWEN MINING vs. LOANDEPOT INC A | MCEWEN MINING vs. Canon Marketing Japan | MCEWEN MINING vs. H2O Retailing | MCEWEN MINING vs. Indutrade AB |
| Calbee vs. FIREWEED METALS P | Calbee vs. MCEWEN MINING INC | Calbee vs. CONTAGIOUS GAMING INC | Calbee vs. PLAYMATES TOYS |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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