Correlation Between MCEWEN MINING and GAMING FAC
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and GAMING FAC 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 GAMING FAC 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 GAMING FAC SA, you can compare the effects of market volatilities on MCEWEN MINING and GAMING FAC 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 GAMING FAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and GAMING FAC.
Diversification Opportunities for MCEWEN MINING and GAMING FAC
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and GAMING is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and GAMING FAC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMING FAC SA 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 GAMING FAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMING FAC SA has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and GAMING FAC go up and down completely randomly.
Pair Corralation between MCEWEN MINING and GAMING FAC
Assuming the 90 days horizon MCEWEN MINING is expected to generate 44.21 times less return on investment than GAMING FAC. But when comparing it to its historical volatility, MCEWEN MINING INC is 1.96 times less risky than GAMING FAC. It trades about 0.01 of its potential returns per unit of risk. GAMING FAC SA is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 168.00 in GAMING FAC SA on November 5, 2024 and sell it today you would earn a total of 45.00 from holding GAMING FAC SA or generate 26.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. GAMING FAC SA
Performance |
| Timeline |
| MCEWEN MINING INC |
| GAMING FAC SA |
MCEWEN MINING and GAMING FAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and GAMING FAC
The main advantage of trading using opposite MCEWEN MINING and GAMING FAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, GAMING FAC 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 GAMING FAC will offset losses from the drop in GAMING FAC's long position.| MCEWEN MINING vs. Harmony Gold Mining | MCEWEN MINING vs. Telecom Argentina SA | MCEWEN MINING vs. TELECOM ITALIA | MCEWEN MINING vs. SK TELECOM TDADR |
| GAMING FAC vs. PEPTONIC MEDICAL | GAMING FAC vs. Medical Properties Trust | GAMING FAC vs. EEDUCATION ALBERT AB | GAMING FAC vs. Apollo Medical Holdings |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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