Correlation Between MCEWEN MINING and Aozora Bank
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Aozora Bank 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 Aozora Bank 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 Aozora Bank, you can compare the effects of market volatilities on MCEWEN MINING and Aozora Bank 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 Aozora Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Aozora Bank.
Diversification Opportunities for MCEWEN MINING and Aozora Bank
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MCEWEN and Aozora is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Aozora Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aozora Bank 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 Aozora Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aozora Bank has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Aozora Bank go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Aozora Bank
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Aozora Bank. In addition to that, MCEWEN MINING is 1.78 times more volatile than Aozora Bank. It trades about -0.08 of its total potential returns per unit of risk. Aozora Bank is currently generating about -0.03 per unit of volatility. If you would invest 1,580 in Aozora Bank on September 5, 2024 and sell it today you would lose (30.00) from holding Aozora Bank or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Aozora Bank
Performance |
| Timeline |
| MCEWEN MINING INC |
| Aozora Bank |
MCEWEN MINING and Aozora Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Aozora Bank
The main advantage of trading using opposite MCEWEN MINING and Aozora Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Aozora Bank 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 Aozora Bank will offset losses from the drop in Aozora Bank'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 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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