Correlation Between MCEWEN MINING and Coca Cola
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Coca Cola 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 Coca Cola 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 Coca Cola HBC, you can compare the effects of market volatilities on MCEWEN MINING and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Coca Cola.
Diversification Opportunities for MCEWEN MINING and Coca Cola
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and Coca is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Coca Cola HBC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola HBC 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola HBC has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Coca Cola go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Coca Cola
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.65 times more return on investment than Coca Cola. However, MCEWEN MINING is 2.65 times more volatile than Coca Cola HBC. It trades about 0.02 of its potential returns per unit of risk. Coca Cola HBC is currently generating about 0.05 per unit of risk. If you would invest 735.00 in MCEWEN MINING INC on August 31, 2024 and sell it today you would earn a total of 40.00 from holding MCEWEN MINING INC or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Coca Cola HBC
Performance |
| Timeline |
| MCEWEN MINING INC |
| Coca Cola HBC |
MCEWEN MINING and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Coca Cola
The main advantage of trading using opposite MCEWEN MINING and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| MCEWEN MINING vs. BLUESCOPE STEEL | MCEWEN MINING vs. MEDICAL FACILITIES NEW | MCEWEN MINING vs. IMAGIN MEDICAL INC | MCEWEN MINING vs. Avanos Medical |
| Coca Cola vs. Western Copper and | Coca Cola vs. SERI INDUSTRIAL EO | Coca Cola vs. Jacquet Metal Service | Coca Cola vs. Tencent Music Entertainment |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance |