Correlation Between MCEWEN MINING and BII Railway
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and BII Railway 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 BII Railway 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 BII Railway Transportation, you can compare the effects of market volatilities on MCEWEN MINING and BII Railway 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 BII Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and BII Railway.
Diversification Opportunities for MCEWEN MINING and BII Railway
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and BII is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and BII Railway Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BII Railway Transpor 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 BII Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BII Railway Transpor has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and BII Railway go up and down completely randomly.
Pair Corralation between MCEWEN MINING and BII Railway
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.93 times more return on investment than BII Railway. However, MCEWEN MINING is 1.93 times more volatile than BII Railway Transportation. It trades about 0.11 of its potential returns per unit of risk. BII Railway Transportation is currently generating about -0.04 per unit of risk. If you would invest 795.00 in MCEWEN MINING INC on September 13, 2024 and sell it today you would earn a total of 60.00 from holding MCEWEN MINING INC or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
MCEWEN MINING INC vs. BII Railway Transportation
Performance |
| Timeline |
| MCEWEN MINING INC |
| BII Railway Transpor |
MCEWEN MINING and BII Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and BII Railway
The main advantage of trading using opposite MCEWEN MINING and BII Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, BII Railway 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 BII Railway will offset losses from the drop in BII Railway'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 |
| BII Railway vs. Cognizant Technology Solutions | BII Railway vs. Superior Plus Corp | BII Railway vs. SIVERS SEMICONDUCTORS AB | BII Railway vs. Norsk Hydro ASA |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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