Correlation Between MCEWEN MINING and Fevertree Drinks
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Fevertree Drinks 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 Fevertree Drinks 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 Fevertree Drinks PLC, you can compare the effects of market volatilities on MCEWEN MINING and Fevertree Drinks 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 Fevertree Drinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Fevertree Drinks.
Diversification Opportunities for MCEWEN MINING and Fevertree Drinks
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and Fevertree is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Fevertree Drinks PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fevertree Drinks 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 Fevertree Drinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fevertree Drinks PLC has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Fevertree Drinks go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Fevertree Drinks
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.7 times more return on investment than Fevertree Drinks. However, MCEWEN MINING is 1.7 times more volatile than Fevertree Drinks PLC. It trades about -0.04 of its potential returns per unit of risk. Fevertree Drinks PLC is currently generating about -0.15 per unit of risk. If you would invest 1,020 in MCEWEN MINING INC on September 3, 2024 and sell it today you would lose (235.00) from holding MCEWEN MINING INC or give up 23.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Fevertree Drinks PLC
Performance |
| Timeline |
| MCEWEN MINING INC |
| Fevertree Drinks PLC |
MCEWEN MINING and Fevertree Drinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Fevertree Drinks
The main advantage of trading using opposite MCEWEN MINING and Fevertree Drinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Fevertree Drinks 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 Fevertree Drinks will offset losses from the drop in Fevertree Drinks' long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
| Fevertree Drinks vs. United Natural Foods | Fevertree Drinks vs. Boyd Gaming | Fevertree Drinks vs. TYSON FOODS A | Fevertree Drinks vs. Penn National Gaming |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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