Correlation Between MCEWEN MINING and De Grey
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and De Grey 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 De Grey 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 De Grey Mining, you can compare the effects of market volatilities on MCEWEN MINING and De Grey 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 De Grey. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and De Grey.
Diversification Opportunities for MCEWEN MINING and De Grey
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and DGD is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and De Grey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Grey Mining 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 De Grey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Grey Mining has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and De Grey go up and down completely randomly.
Pair Corralation between MCEWEN MINING and De Grey
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.41 times more return on investment than De Grey. However, MCEWEN MINING is 1.41 times more volatile than De Grey Mining. It trades about -0.05 of its potential returns per unit of risk. De Grey Mining is currently generating about -0.1 per unit of risk. If you would invest 815.00 in MCEWEN MINING INC on October 10, 2024 and sell it today you would lose (30.00) from holding MCEWEN MINING INC or give up 3.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. De Grey Mining
Performance |
| Timeline |
| MCEWEN MINING INC |
| De Grey Mining |
MCEWEN MINING and De Grey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and De Grey
The main advantage of trading using opposite MCEWEN MINING and De Grey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, De Grey 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 De Grey will offset losses from the drop in De Grey's long position.| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
| De Grey vs. CarsalesCom | De Grey vs. KENEDIX OFFICE INV | De Grey vs. ADRIATIC METALS LS 013355 | De Grey vs. ARDAGH METAL PACDL 0001 |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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