Correlation Between MCEWEN MINING and Electronic Arts
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Electronic Arts 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 Electronic Arts 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 Electronic Arts, you can compare the effects of market volatilities on MCEWEN MINING and Electronic Arts 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 Electronic Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Electronic Arts.
Diversification Opportunities for MCEWEN MINING and Electronic Arts
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Electronic is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Electronic Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Arts 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 Electronic Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Arts has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Electronic Arts go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Electronic Arts
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.76 times more return on investment than Electronic Arts. However, MCEWEN MINING is 2.76 times more volatile than Electronic Arts. It trades about 0.04 of its potential returns per unit of risk. Electronic Arts is currently generating about 0.05 per unit of risk. If you would invest 535.00 in MCEWEN MINING INC on September 3, 2024 and sell it today you would earn a total of 250.00 from holding MCEWEN MINING INC or generate 46.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Electronic Arts
Performance |
| Timeline |
| MCEWEN MINING INC |
| Electronic Arts |
MCEWEN MINING and Electronic Arts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Electronic Arts
The main advantage of trading using opposite MCEWEN MINING and Electronic Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Electronic Arts 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 Electronic Arts will offset losses from the drop in Electronic Arts' long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
| Electronic Arts vs. MCEWEN MINING INC | Electronic Arts vs. COSTCO WHOLESALE CDR | Electronic Arts vs. BURLINGTON STORES | Electronic Arts vs. SHIP HEALTHCARE HLDGINC |
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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