Correlation Between MCEWEN MINING and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Agilent Technologies 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 Agilent Technologies 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 Agilent Technologies, you can compare the effects of market volatilities on MCEWEN MINING and Agilent Technologies 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 Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Agilent Technologies.
Diversification Opportunities for MCEWEN MINING and Agilent Technologies
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Agilent is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies 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 Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Agilent Technologies go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Agilent Technologies
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 4.04 times more return on investment than Agilent Technologies. However, MCEWEN MINING is 4.04 times more volatile than Agilent Technologies. It trades about -0.06 of its potential returns per unit of risk. Agilent Technologies is currently generating about -0.25 per unit of risk. If you would invest 815.00 in MCEWEN MINING INC on October 11, 2024 and sell it today you would lose (30.00) from holding MCEWEN MINING INC or give up 3.68% 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. Agilent Technologies
Performance |
| Timeline |
| MCEWEN MINING INC |
| Agilent Technologies |
MCEWEN MINING and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Agilent Technologies
The main advantage of trading using opposite MCEWEN MINING and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Agilent Technologies 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 Agilent Technologies will offset losses from the drop in Agilent Technologies' long position.| MCEWEN MINING vs. TOREX SEMICONDUCTOR LTD | MCEWEN MINING vs. Phibro Animal Health | MCEWEN MINING vs. Acadia Healthcare | MCEWEN MINING vs. Nordic Semiconductor ASA |
| Agilent Technologies vs. CODERE ONLINE LUX | Agilent Technologies vs. Xinhua Winshare Publishing | Agilent Technologies vs. Urban Outfitters | Agilent Technologies vs. betterU Education Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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