Correlation Between MCEWEN MINING and CSX
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and CSX 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 CSX 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 CSX Corporation, you can compare the effects of market volatilities on MCEWEN MINING and CSX 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 CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and CSX.
Diversification Opportunities for MCEWEN MINING and CSX
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and CSX is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation 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 CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and CSX go up and down completely randomly.
Pair Corralation between MCEWEN MINING and CSX
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.81 times more return on investment than CSX. However, MCEWEN MINING is 2.81 times more volatile than CSX Corporation. It trades about 0.04 of its potential returns per unit of risk. CSX Corporation is currently generating about 0.03 per unit of risk. If you would invest 540.00 in MCEWEN MINING INC on September 14, 2024 and sell it today you would earn a total of 315.00 from holding MCEWEN MINING INC or generate 58.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. CSX Corp.
Performance |
| Timeline |
| MCEWEN MINING INC |
| CSX Corporation |
MCEWEN MINING and CSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and CSX
The main advantage of trading using opposite MCEWEN MINING and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX'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 |
| CSX vs. Hitachi Construction Machinery | CSX vs. GALENA MINING LTD | CSX vs. MCEWEN MINING INC | CSX vs. Federal Agricultural Mortgage |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |