Correlation Between MCEWEN MINING and Eurasia Mining
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Eurasia Mining 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 Eurasia Mining 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 Eurasia Mining Plc, you can compare the effects of market volatilities on MCEWEN MINING and Eurasia Mining 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 Eurasia Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Eurasia Mining.
Diversification Opportunities for MCEWEN MINING and Eurasia Mining
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Eurasia is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Eurasia Mining Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurasia Mining Plc 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 Eurasia Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurasia Mining Plc has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Eurasia Mining go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Eurasia Mining
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Eurasia Mining. In addition to that, MCEWEN MINING is 7.77 times more volatile than Eurasia Mining Plc. It trades about -0.18 of its total potential returns per unit of risk. Eurasia Mining Plc is currently generating about -0.21 per unit of volatility. If you would invest 2.40 in Eurasia Mining Plc on November 30, 2024 and sell it today you would lose (0.05) from holding Eurasia Mining Plc or give up 2.08% 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. Eurasia Mining Plc
Performance |
Timeline |
MCEWEN MINING INC |
Eurasia Mining Plc |
MCEWEN MINING and Eurasia Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MCEWEN MINING and Eurasia Mining
The main advantage of trading using opposite MCEWEN MINING and Eurasia Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Eurasia Mining 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 Eurasia Mining will offset losses from the drop in Eurasia Mining's long position.MCEWEN MINING vs. Air Transport Services | ||
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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