Correlation Between MCEWEN MINING and Chalice Mining
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Chalice Mining 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 Chalice Mining 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 Chalice Mining Limited, you can compare the effects of market volatilities on MCEWEN MINING and Chalice Mining 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 Chalice Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Chalice Mining.
Diversification Opportunities for MCEWEN MINING and Chalice Mining
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MCEWEN and Chalice is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Chalice Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chalice Mining 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 Chalice Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chalice Mining has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Chalice Mining go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Chalice Mining
Assuming the 90 days horizon MCEWEN MINING is expected to generate 18.15 times less return on investment than Chalice Mining. But when comparing it to its historical volatility, MCEWEN MINING INC is 1.41 times less risky than Chalice Mining. It trades about 0.0 of its potential returns per unit of risk. Chalice Mining Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Chalice Mining Limited on September 21, 2024 and sell it today you would earn a total of 2.00 from holding Chalice Mining Limited or generate 3.13% 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. Chalice Mining Limited
Performance |
| Timeline |
| MCEWEN MINING INC |
| Chalice Mining |
MCEWEN MINING and Chalice Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Chalice Mining
The main advantage of trading using opposite MCEWEN MINING and Chalice Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Chalice Mining 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 Chalice Mining will offset losses from the drop in Chalice Mining's long position.| MCEWEN MINING vs. Cleanaway Waste Management | MCEWEN MINING vs. RETAIL FOOD GROUP | MCEWEN MINING vs. CARSALESCOM | MCEWEN MINING vs. Automatic Data Processing |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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