Correlation Between MCEWEN MINING and DATAGROUP
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and DATAGROUP 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 DATAGROUP 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 DATAGROUP SE, you can compare the effects of market volatilities on MCEWEN MINING and DATAGROUP 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 DATAGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and DATAGROUP.
Diversification Opportunities for MCEWEN MINING and DATAGROUP
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and DATAGROUP is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and DATAGROUP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATAGROUP SE 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 DATAGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATAGROUP SE has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and DATAGROUP go up and down completely randomly.
Pair Corralation between MCEWEN MINING and DATAGROUP
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the DATAGROUP. In addition to that, MCEWEN MINING is 1.55 times more volatile than DATAGROUP SE. It trades about -0.04 of its total potential returns per unit of risk. DATAGROUP SE is currently generating about 0.01 per unit of volatility. If you would invest 4,620 in DATAGROUP SE on September 3, 2024 and sell it today you would lose (50.00) from holding DATAGROUP SE or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. DATAGROUP SE
Performance |
| Timeline |
| MCEWEN MINING INC |
| DATAGROUP SE |
MCEWEN MINING and DATAGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and DATAGROUP
The main advantage of trading using opposite MCEWEN MINING and DATAGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, DATAGROUP 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 DATAGROUP will offset losses from the drop in DATAGROUP'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 |
| DATAGROUP vs. VIRGIN WINES UK | DATAGROUP vs. Marie Brizard Wine | DATAGROUP vs. Microchip Technology Incorporated | DATAGROUP vs. CHINA TONTINE WINES |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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