Correlation Between MCEWEN MINING and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and CompuGroup Medical 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 CompuGroup Medical 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 CompuGroup Medical SE, you can compare the effects of market volatilities on MCEWEN MINING and CompuGroup Medical 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 CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and CompuGroup Medical.
Diversification Opportunities for MCEWEN MINING and CompuGroup Medical
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and CompuGroup is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical 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 CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and CompuGroup Medical go up and down completely randomly.
Pair Corralation between MCEWEN MINING and CompuGroup Medical
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.48 times more return on investment than CompuGroup Medical. However, MCEWEN MINING is 1.48 times more volatile than CompuGroup Medical SE. It trades about 0.04 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about -0.05 per unit of risk. If you would invest 530.00 in MCEWEN MINING INC on August 28, 2024 and sell it today you would earn a total of 290.00 from holding MCEWEN MINING INC or generate 54.72% 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. CompuGroup Medical SE
Performance |
| Timeline |
| MCEWEN MINING INC |
| CompuGroup Medical |
MCEWEN MINING and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and CompuGroup Medical
The main advantage of trading using opposite MCEWEN MINING and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, CompuGroup Medical 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 CompuGroup Medical will offset losses from the drop in CompuGroup Medical's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
| CompuGroup Medical vs. Superior Plus Corp | CompuGroup Medical vs. NMI Holdings | CompuGroup Medical vs. Origin Agritech | CompuGroup Medical vs. SIVERS SEMICONDUCTORS AB |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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