Correlation Between MCEWEN MINING and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Comstock Holding 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 Comstock Holding 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 Comstock Holding Companies, you can compare the effects of market volatilities on MCEWEN MINING and Comstock Holding 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 Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Comstock Holding.
Diversification Opportunities for MCEWEN MINING and Comstock Holding
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MCEWEN and Comstock is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com 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 Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Comstock Holding go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Comstock Holding
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.06 times more return on investment than Comstock Holding. However, MCEWEN MINING is 1.06 times more volatile than Comstock Holding Companies. It trades about 0.09 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about 0.03 per unit of risk. If you would invest 790.00 in MCEWEN MINING INC on October 15, 2024 and sell it today you would earn a total of 25.00 from holding MCEWEN MINING INC or generate 3.16% 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. Comstock Holding Companies
Performance |
| Timeline |
| MCEWEN MINING INC |
| Comstock Holding Com |
MCEWEN MINING and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Comstock Holding
The main advantage of trading using opposite MCEWEN MINING and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Comstock Holding 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 Comstock Holding will offset losses from the drop in Comstock Holding's long position.| MCEWEN MINING vs. URBAN OUTFITTERS | MCEWEN MINING vs. Ebro Foods SA | MCEWEN MINING vs. American Homes 4 | MCEWEN MINING vs. United Natural Foods |
| Comstock Holding vs. OBSERVE MEDICAL ASA | Comstock Holding vs. GRUPO CARSO A1 | Comstock Holding vs. CVR Medical Corp | Comstock Holding vs. GLOBUS MEDICAL A |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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