Correlation Between MCEWEN MINING and Encavis AG
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Encavis AG 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 Encavis AG 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 Encavis AG, you can compare the effects of market volatilities on MCEWEN MINING and Encavis AG 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 Encavis AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Encavis AG.
Diversification Opportunities for MCEWEN MINING and Encavis AG
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and Encavis is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Encavis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Encavis AG 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 Encavis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Encavis AG has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Encavis AG go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Encavis AG
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.65 times more return on investment than Encavis AG. However, MCEWEN MINING is 1.65 times more volatile than Encavis AG. It trades about 0.04 of its potential returns per unit of risk. Encavis AG is currently generating about 0.05 per unit of risk. If you would invest 680.00 in MCEWEN MINING INC on September 15, 2024 and sell it today you would earn a total of 185.00 from holding MCEWEN MINING INC or generate 27.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Encavis AG
Performance |
| Timeline |
| MCEWEN MINING INC |
| Encavis AG |
MCEWEN MINING and Encavis AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Encavis AG
The main advantage of trading using opposite MCEWEN MINING and Encavis AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Encavis AG 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 Encavis AG will offset losses from the drop in Encavis AG'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 |
| Encavis AG vs. ADRIATIC METALS LS 013355 | Encavis AG vs. MAROC TELECOM | Encavis AG vs. MCEWEN MINING INC | Encavis AG vs. Ribbon Communications |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |