Correlation Between MCEWEN MINING and BRIT AMER
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and BRIT AMER 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 BRIT AMER 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 BRIT AMER TOBACCO, you can compare the effects of market volatilities on MCEWEN MINING and BRIT AMER 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 BRIT AMER. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and BRIT AMER.
Diversification Opportunities for MCEWEN MINING and BRIT AMER
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and BRIT is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and BRIT AMER TOBACCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRIT AMER TOBACCO 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 BRIT AMER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRIT AMER TOBACCO has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and BRIT AMER go up and down completely randomly.
Pair Corralation between MCEWEN MINING and BRIT AMER
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 3.03 times more return on investment than BRIT AMER. However, MCEWEN MINING is 3.03 times more volatile than BRIT AMER TOBACCO. It trades about 0.02 of its potential returns per unit of risk. BRIT AMER TOBACCO is currently generating about 0.05 per unit of risk. If you would invest 665.00 in MCEWEN MINING INC on December 1, 2024 and sell it today you would earn a total of 15.00 from holding MCEWEN MINING INC or generate 2.26% 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. BRIT AMER TOBACCO
Performance |
| Timeline |
| MCEWEN MINING INC |
| BRIT AMER TOBACCO |
MCEWEN MINING and BRIT AMER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and BRIT AMER
The main advantage of trading using opposite MCEWEN MINING and BRIT AMER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, BRIT AMER 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 BRIT AMER will offset losses from the drop in BRIT AMER's long position.| MCEWEN MINING vs. MEDICAL FACILITIES NEW | MCEWEN MINING vs. MeVis Medical Solutions | MCEWEN MINING vs. CVR Medical Corp | MCEWEN MINING vs. PennantPark Investment |
| BRIT AMER vs. Globex Mining Enterprises | BRIT AMER vs. Eurasia Mining Plc | BRIT AMER vs. MAG Silver Corp | BRIT AMER vs. Pebblebrook Hotel Trust |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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