Correlation Between MCEWEN MINING and BRP
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and BRP 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 BRP 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 BRP Inc, you can compare the effects of market volatilities on MCEWEN MINING and BRP 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 BRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and BRP.
Diversification Opportunities for MCEWEN MINING and BRP
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MCEWEN and BRP is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and BRP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRP 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 BRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRP Inc has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and BRP go up and down completely randomly.
Pair Corralation between MCEWEN MINING and BRP
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.39 times more return on investment than BRP. However, MCEWEN MINING is 1.39 times more volatile than BRP Inc. It trades about 0.18 of its potential returns per unit of risk. BRP Inc is currently generating about -0.24 per unit of risk. If you would invest 670.00 in MCEWEN MINING INC on December 24, 2024 and sell it today you would earn a total of 85.00 from holding MCEWEN MINING INC or generate 12.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. BRP Inc
Performance |
| Timeline |
| MCEWEN MINING INC |
| BRP Inc |
MCEWEN MINING and BRP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and BRP
The main advantage of trading using opposite MCEWEN MINING and BRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, BRP 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 BRP will offset losses from the drop in BRP's long position.| MCEWEN MINING vs. Ultra Clean Holdings | MCEWEN MINING vs. SALESFORCE INC CDR | MCEWEN MINING vs. Cleanaway Waste Management | MCEWEN MINING vs. MUTUIONLINE |
| BRP vs. Coeur Mining | BRP vs. 24SEVENOFFICE GROUP AB | BRP vs. Yuexiu Transport Infrastructure | BRP vs. Television Broadcasts Limited |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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