Correlation Between MCEWEN MINING and Air New
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Air New 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 Air New 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 Air New Zealand, you can compare the effects of market volatilities on MCEWEN MINING and Air New 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 Air New. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Air New.
Diversification Opportunities for MCEWEN MINING and Air New
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Air is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Air New Zealand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air New Zealand 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 Air New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air New Zealand has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Air New go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Air New
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.0 times more return on investment than Air New. However, MCEWEN MINING is 1.0 times more volatile than Air New Zealand. It trades about 0.18 of its potential returns per unit of risk. Air New Zealand is currently generating about 0.08 per unit of risk. If you would invest 760.00 in MCEWEN MINING INC on October 23, 2024 and sell it today you would earn a total of 55.00 from holding MCEWEN MINING INC or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Air New Zealand
Performance |
| Timeline |
| MCEWEN MINING INC |
| Air New Zealand |
MCEWEN MINING and Air New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Air New
The main advantage of trading using opposite MCEWEN MINING and Air New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Air New 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 Air New will offset losses from the drop in Air New's long position.| MCEWEN MINING vs. ON SEMICONDUCTOR | MCEWEN MINING vs. DFS Furniture PLC | MCEWEN MINING vs. MagnaChip Semiconductor Corp | MCEWEN MINING vs. Taiwan Semiconductor Manufacturing |
| Air New vs. The Trade Desk | Air New vs. Perseus Mining Limited | Air New vs. MCEWEN MINING INC | Air New vs. ARDAGH METAL PACDL 0001 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |