Correlation Between MCEWEN MINING and ATHENE HOLDING
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and ATHENE HOLDING 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 ATHENE HOLDING 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 ATHENE HOLDING PRFSERC, you can compare the effects of market volatilities on MCEWEN MINING and ATHENE HOLDING 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 ATHENE HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and ATHENE HOLDING.
Diversification Opportunities for MCEWEN MINING and ATHENE HOLDING
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and ATHENE is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and ATHENE HOLDING PRFSERC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HOLDING PRFSERC 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 ATHENE HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATHENE HOLDING PRFSERC has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and ATHENE HOLDING go up and down completely randomly.
Pair Corralation between MCEWEN MINING and ATHENE HOLDING
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 3.59 times more return on investment than ATHENE HOLDING. However, MCEWEN MINING is 3.59 times more volatile than ATHENE HOLDING PRFSERC. It trades about 0.03 of its potential returns per unit of risk. ATHENE HOLDING PRFSERC is currently generating about 0.05 per unit of risk. If you would invest 635.00 in MCEWEN MINING INC on October 12, 2024 and sell it today you would earn a total of 170.00 from holding MCEWEN MINING INC or generate 26.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
MCEWEN MINING INC vs. ATHENE HOLDING PRFSERC
Performance |
| Timeline |
| MCEWEN MINING INC |
| ATHENE HOLDING PRFSERC |
MCEWEN MINING and ATHENE HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and ATHENE HOLDING
The main advantage of trading using opposite MCEWEN MINING and ATHENE HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, ATHENE HOLDING 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 ATHENE HOLDING will offset losses from the drop in ATHENE HOLDING's long position.| MCEWEN MINING vs. Pentair plc | MCEWEN MINING vs. MOBILE FACTORY INC | MCEWEN MINING vs. SOGECLAIR SA INH | MCEWEN MINING vs. Charter Communications |
| ATHENE HOLDING vs. CODERE ONLINE LUX | ATHENE HOLDING vs. SERI INDUSTRIAL EO | ATHENE HOLDING vs. CARSALESCOM | ATHENE HOLDING vs. KENEDIX OFFICE INV |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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