Correlation Between MCEWEN MINING and AECOM TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 AECOM TECHNOLOGY, you can compare the effects of market volatilities on MCEWEN MINING and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and AECOM TECHNOLOGY.
Diversification Opportunities for MCEWEN MINING and AECOM TECHNOLOGY
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and AECOM is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and AECOM TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECOM TECHNOLOGY 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 AECOM TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECOM TECHNOLOGY has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and AECOM TECHNOLOGY go up and down completely randomly.
Pair Corralation between MCEWEN MINING and AECOM TECHNOLOGY
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.08 times more return on investment than AECOM TECHNOLOGY. However, MCEWEN MINING is 2.08 times more volatile than AECOM TECHNOLOGY. It trades about 0.06 of its potential returns per unit of risk. AECOM TECHNOLOGY is currently generating about 0.01 per unit of risk. If you would invest 755.00 in MCEWEN MINING INC on October 11, 2024 and sell it today you would earn a total of 40.00 from holding MCEWEN MINING INC or generate 5.3% 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. AECOM TECHNOLOGY
Performance |
| Timeline |
| MCEWEN MINING INC |
| AECOM TECHNOLOGY |
MCEWEN MINING and AECOM TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and AECOM TECHNOLOGY
The main advantage of trading using opposite MCEWEN MINING and AECOM TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, AECOM TECHNOLOGY 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 AECOM TECHNOLOGY will offset losses from the drop in AECOM TECHNOLOGY's long position.| MCEWEN MINING vs. TOREX SEMICONDUCTOR LTD | MCEWEN MINING vs. Phibro Animal Health | MCEWEN MINING vs. Acadia Healthcare | MCEWEN MINING vs. Nordic Semiconductor ASA |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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