Correlation Between MCEWEN MINING and Allscripts Healthcare
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Allscripts Healthcare 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 Allscripts Healthcare 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 Allscripts Healthcare Solutions, you can compare the effects of market volatilities on MCEWEN MINING and Allscripts Healthcare 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 Allscripts Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Allscripts Healthcare.
Diversification Opportunities for MCEWEN MINING and Allscripts Healthcare
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Allscripts is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Allscripts Healthcare Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allscripts Healthcare 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 Allscripts Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allscripts Healthcare has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Allscripts Healthcare go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Allscripts Healthcare
Assuming the 90 days horizon MCEWEN MINING is expected to generate 10.99 times less return on investment than Allscripts Healthcare. But when comparing it to its historical volatility, MCEWEN MINING INC is 11.76 times less risky than Allscripts Healthcare. It trades about 0.04 of its potential returns per unit of risk. Allscripts Healthcare Solutions is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,640 in Allscripts Healthcare Solutions on September 14, 2024 and sell it today you would lose (720.00) from holding Allscripts Healthcare Solutions or give up 43.9% 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. Allscripts Healthcare Solution
Performance |
| Timeline |
| MCEWEN MINING INC |
| Allscripts Healthcare |
MCEWEN MINING and Allscripts Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Allscripts Healthcare
The main advantage of trading using opposite MCEWEN MINING and Allscripts Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Allscripts Healthcare 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 Allscripts Healthcare will offset losses from the drop in Allscripts Healthcare's long position.| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Norsk Hydro ASA |
| Allscripts Healthcare vs. NISSIN FOODS HLDGS | Allscripts Healthcare vs. MCEWEN MINING INC | Allscripts Healthcare vs. EBRO FOODS | Allscripts Healthcare vs. Kaiser Aluminum |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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