Correlation Between MCEWEN MINING and CAPITAL ONE
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and CAPITAL ONE 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 CAPITAL ONE 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 CAPITAL ONE FIN, you can compare the effects of market volatilities on MCEWEN MINING and CAPITAL ONE 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 CAPITAL ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and CAPITAL ONE.
Diversification Opportunities for MCEWEN MINING and CAPITAL ONE
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and CAPITAL is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and CAPITAL ONE FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAPITAL ONE FIN 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 CAPITAL ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAPITAL ONE FIN has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and CAPITAL ONE go up and down completely randomly.
Pair Corralation between MCEWEN MINING and CAPITAL ONE
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the CAPITAL ONE. In addition to that, MCEWEN MINING is 2.63 times more volatile than CAPITAL ONE FIN. It trades about -0.05 of its total potential returns per unit of risk. CAPITAL ONE FIN is currently generating about -0.02 per unit of volatility. If you would invest 1,811 in CAPITAL ONE FIN on September 13, 2024 and sell it today you would lose (31.00) from holding CAPITAL ONE FIN or give up 1.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
MCEWEN MINING INC vs. CAPITAL ONE FIN
Performance |
| Timeline |
| MCEWEN MINING INC |
| CAPITAL ONE FIN |
MCEWEN MINING and CAPITAL ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and CAPITAL ONE
The main advantage of trading using opposite MCEWEN MINING and CAPITAL ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, CAPITAL ONE 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 CAPITAL ONE will offset losses from the drop in CAPITAL ONE's long position.| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Norsk Hydro ASA |
| CAPITAL ONE vs. Mastercard | CAPITAL ONE vs. American Express | CAPITAL ONE vs. ORIX Corporation | CAPITAL ONE vs. Superior Plus Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |