Correlation Between MCEWEN MINING and CyberArk Software
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and CyberArk Software 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 CyberArk Software 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 CyberArk Software, you can compare the effects of market volatilities on MCEWEN MINING and CyberArk Software 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 CyberArk Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and CyberArk Software.
Diversification Opportunities for MCEWEN MINING and CyberArk Software
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and CyberArk is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software 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 CyberArk Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberArk Software has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and CyberArk Software go up and down completely randomly.
Pair Corralation between MCEWEN MINING and CyberArk Software
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the CyberArk Software. In addition to that, MCEWEN MINING is 1.2 times more volatile than CyberArk Software. It trades about -0.01 of its total potential returns per unit of risk. CyberArk Software is currently generating about 0.31 per unit of volatility. If you would invest 29,910 in CyberArk Software on October 14, 2024 and sell it today you would earn a total of 3,620 from holding CyberArk Software or generate 12.1% 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. CyberArk Software
Performance |
| Timeline |
| MCEWEN MINING INC |
| CyberArk Software |
MCEWEN MINING and CyberArk Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and CyberArk Software
The main advantage of trading using opposite MCEWEN MINING and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, CyberArk Software 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 CyberArk Software will offset losses from the drop in CyberArk Software'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 |
| CyberArk Software vs. MCEWEN MINING INC | CyberArk Software vs. Globex Mining Enterprises | CyberArk Software vs. EVS Broadcast Equipment | CyberArk Software vs. Yanzhou Coal Mining |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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