Correlation Between MCEWEN MINING and Compagnie Plastic
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Compagnie Plastic 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 Compagnie Plastic 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 Compagnie Plastic Omnium, you can compare the effects of market volatilities on MCEWEN MINING and Compagnie Plastic 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 Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Compagnie Plastic.
Diversification Opportunities for MCEWEN MINING and Compagnie Plastic
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Compagnie is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Compagnie Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Plastic Omnium 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 Compagnie Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Plastic Omnium has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Compagnie Plastic go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Compagnie Plastic
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.77 times less return on investment than Compagnie Plastic. But when comparing it to its historical volatility, MCEWEN MINING INC is 1.08 times less risky than Compagnie Plastic. It trades about 0.17 of its potential returns per unit of risk. Compagnie Plastic Omnium is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 967.00 in Compagnie Plastic Omnium on October 20, 2024 and sell it today you would earn a total of 132.00 from holding Compagnie Plastic Omnium or generate 13.65% 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. Compagnie Plastic Omnium
Performance |
| Timeline |
| MCEWEN MINING INC |
| Compagnie Plastic Omnium |
MCEWEN MINING and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Compagnie Plastic
The main advantage of trading using opposite MCEWEN MINING and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Compagnie Plastic 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 Compagnie Plastic will offset losses from the drop in Compagnie Plastic's long position.| MCEWEN MINING vs. LOANDEPOT INC A | MCEWEN MINING vs. Canon Marketing Japan | MCEWEN MINING vs. H2O Retailing | MCEWEN MINING vs. Indutrade AB |
| Compagnie Plastic vs. Kingdee International Software | Compagnie Plastic vs. BURLINGTON STORES | Compagnie Plastic vs. ORMAT TECHNOLOGIES | Compagnie Plastic vs. ASPEN TECHINC DL |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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