Correlation Between MCEWEN MINING and Air Transport
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Air Transport 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 Air Transport 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 Air Transport Services, you can compare the effects of market volatilities on MCEWEN MINING and Air Transport 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 Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Air Transport.
Diversification Opportunities for MCEWEN MINING and Air Transport
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Air is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services 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 Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Air Transport go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Air Transport
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.23 times more return on investment than Air Transport. However, MCEWEN MINING is 1.23 times more volatile than Air Transport Services. It trades about 0.03 of its potential returns per unit of risk. Air Transport Services is currently generating about 0.01 per unit of risk. If you would invest 655.00 in MCEWEN MINING INC on September 28, 2024 and sell it today you would earn a total of 105.00 from holding MCEWEN MINING INC or generate 16.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Air Transport Services
Performance |
| Timeline |
| MCEWEN MINING INC |
| Air Transport Services |
MCEWEN MINING and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Air Transport
The main advantage of trading using opposite MCEWEN MINING and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| MCEWEN MINING vs. Fresnillo plc | MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. THARISA NON LIST | MCEWEN MINING vs. Gemfields Group Limited |
| Air Transport vs. Airports of Thailand | Air Transport vs. Aena SME SA | Air Transport vs. AENA SME UNSPADR110 | Air Transport vs. AerCap Holdings NV |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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