Correlation Between MCEWEN MINING and AutoZone
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and AutoZone 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 AutoZone 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 AutoZone, you can compare the effects of market volatilities on MCEWEN MINING and AutoZone 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 AutoZone. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and AutoZone.
Diversification Opportunities for MCEWEN MINING and AutoZone
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and AutoZone is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and AutoZone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AutoZone 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 AutoZone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AutoZone has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and AutoZone go up and down completely randomly.
Pair Corralation between MCEWEN MINING and AutoZone
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.65 times more return on investment than AutoZone. However, MCEWEN MINING is 2.65 times more volatile than AutoZone. It trades about 0.04 of its potential returns per unit of risk. AutoZone is currently generating about 0.07 per unit of risk. If you would invest 660.00 in MCEWEN MINING INC on September 4, 2024 and sell it today you would earn a total of 125.00 from holding MCEWEN MINING INC or generate 18.94% 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. AutoZone
Performance |
| Timeline |
| MCEWEN MINING INC |
| AutoZone |
MCEWEN MINING and AutoZone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and AutoZone
The main advantage of trading using opposite MCEWEN MINING and AutoZone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, AutoZone 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 AutoZone will offset losses from the drop in AutoZone'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 |
| AutoZone vs. Perseus Mining Limited | AutoZone vs. Lion One Metals | AutoZone vs. MCEWEN MINING INC | AutoZone vs. CVR Medical Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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