Correlation Between MCEWEN MINING and Amazon
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Amazon 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 Amazon 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 Amazon Inc, you can compare the effects of market volatilities on MCEWEN MINING and Amazon 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 Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Amazon.
Diversification Opportunities for MCEWEN MINING and Amazon
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and Amazon is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon 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 Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Amazon go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Amazon
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Amazon. In addition to that, MCEWEN MINING is 1.8 times more volatile than Amazon Inc. It trades about -0.03 of its total potential returns per unit of risk. Amazon Inc is currently generating about 0.21 per unit of volatility. If you would invest 16,552 in Amazon Inc on September 3, 2024 and sell it today you would earn a total of 2,994 from holding Amazon Inc or generate 18.09% 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. Amazon Inc
Performance |
| Timeline |
| MCEWEN MINING INC |
| Amazon Inc |
MCEWEN MINING and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Amazon
The main advantage of trading using opposite MCEWEN MINING and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
| Amazon vs. Perseus Mining Limited | Amazon vs. Ming Le Sports | Amazon vs. MCEWEN MINING INC | Amazon vs. Gaztransport Technigaz SA |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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