Correlation Between MCEWEN MINING and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and CanSino Biologics 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 CanSino Biologics 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 CanSino Biologics, you can compare the effects of market volatilities on MCEWEN MINING and CanSino Biologics 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 CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and CanSino Biologics.
Diversification Opportunities for MCEWEN MINING and CanSino Biologics
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MCEWEN and CanSino is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics 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 CanSino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CanSino Biologics has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and CanSino Biologics go up and down completely randomly.
Pair Corralation between MCEWEN MINING and CanSino Biologics
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the CanSino Biologics. But the stock apears to be less risky and, when comparing its historical volatility, MCEWEN MINING INC is 1.66 times less risky than CanSino Biologics. The stock trades about -0.09 of its potential returns per unit of risk. The CanSino Biologics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 314.00 in CanSino Biologics on September 4, 2024 and sell it today you would earn a total of 44.00 from holding CanSino Biologics or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MCEWEN MINING INC vs. CanSino Biologics
Performance |
| Timeline |
| MCEWEN MINING INC |
| CanSino Biologics |
MCEWEN MINING and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and CanSino Biologics
The main advantage of trading using opposite MCEWEN MINING and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, CanSino Biologics 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 CanSino Biologics will offset losses from the drop in CanSino Biologics' long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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