Correlation Between MCEWEN MINING and PT Bank
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and PT Bank 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 PT Bank 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 PT Bank Rakyat, you can compare the effects of market volatilities on MCEWEN MINING and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and PT Bank.
Diversification Opportunities for MCEWEN MINING and PT Bank
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MCEWEN and BYRA is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and PT Bank Rakyat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Rakyat 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Rakyat has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and PT Bank go up and down completely randomly.
Pair Corralation between MCEWEN MINING and PT Bank
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the PT Bank. But the stock apears to be less risky and, when comparing its historical volatility, MCEWEN MINING INC is 2.14 times less risky than PT Bank. The stock trades about -0.01 of its potential returns per unit of risk. The PT Bank Rakyat is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 23.00 in PT Bank Rakyat on October 14, 2024 and sell it today you would earn a total of 1.00 from holding PT Bank Rakyat or generate 4.35% 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. PT Bank Rakyat
Performance |
| Timeline |
| MCEWEN MINING INC |
| PT Bank Rakyat |
MCEWEN MINING and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and PT Bank
The main advantage of trading using opposite MCEWEN MINING and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| MCEWEN MINING vs. URBAN OUTFITTERS | MCEWEN MINING vs. Ebro Foods SA | MCEWEN MINING vs. American Homes 4 | MCEWEN MINING vs. United Natural Foods |
| PT Bank vs. Corsair Gaming | PT Bank vs. MCEWEN MINING INC | PT Bank vs. Altair Engineering | PT Bank vs. Zijin Mining Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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