Correlation Between MCEWEN MINING and Big 5
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Big 5 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 Big 5 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 Big 5 Sporting, you can compare the effects of market volatilities on MCEWEN MINING and Big 5 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 Big 5. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Big 5.
Diversification Opportunities for MCEWEN MINING and Big 5
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MCEWEN and Big is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Big 5 Sporting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big 5 Sporting 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 Big 5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big 5 Sporting has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Big 5 go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Big 5
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 0.63 times more return on investment than Big 5. However, MCEWEN MINING INC is 1.59 times less risky than Big 5. It trades about -0.02 of its potential returns per unit of risk. Big 5 Sporting is currently generating about -0.05 per unit of risk. If you would invest 955.00 in MCEWEN MINING INC on September 12, 2024 and sell it today you would lose (140.00) from holding MCEWEN MINING INC or give up 14.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Big 5 Sporting
Performance |
| Timeline |
| MCEWEN MINING INC |
| Big 5 Sporting |
MCEWEN MINING and Big 5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Big 5
The main advantage of trading using opposite MCEWEN MINING and Big 5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Big 5 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 Big 5 will offset losses from the drop in Big 5's long position.| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Norsk Hydro ASA |
| Big 5 vs. Superior Plus Corp | Big 5 vs. SIVERS SEMICONDUCTORS AB | Big 5 vs. NorAm Drilling AS | Big 5 vs. Norsk Hydro ASA |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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