Correlation Between MCEWEN MINING and CeoTronics
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and CeoTronics 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 CeoTronics 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 CeoTronics AG, you can compare the effects of market volatilities on MCEWEN MINING and CeoTronics 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 CeoTronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and CeoTronics.
Diversification Opportunities for MCEWEN MINING and CeoTronics
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and CeoTronics is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and CeoTronics AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CeoTronics AG 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 CeoTronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CeoTronics AG has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and CeoTronics go up and down completely randomly.
Pair Corralation between MCEWEN MINING and CeoTronics
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.53 times less return on investment than CeoTronics. In addition to that, MCEWEN MINING is 1.91 times more volatile than CeoTronics AG. It trades about 0.09 of its total potential returns per unit of risk. CeoTronics AG is currently generating about 0.28 per unit of volatility. If you would invest 580.00 in CeoTronics AG on October 29, 2024 and sell it today you would earn a total of 40.00 from holding CeoTronics AG or generate 6.9% 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. CeoTronics AG
Performance |
| Timeline |
| MCEWEN MINING INC |
| CeoTronics AG |
MCEWEN MINING and CeoTronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and CeoTronics
The main advantage of trading using opposite MCEWEN MINING and CeoTronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, CeoTronics 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 CeoTronics will offset losses from the drop in CeoTronics' long position.| MCEWEN MINING vs. Easy Software AG | MCEWEN MINING vs. BOS BETTER ONLINE | MCEWEN MINING vs. Check Point Software | MCEWEN MINING vs. UPDATE SOFTWARE |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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