Correlation Between MCEWEN MINING and Flowers Foods
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Flowers Foods 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 Flowers Foods 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 Flowers Foods, you can compare the effects of market volatilities on MCEWEN MINING and Flowers Foods 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 Flowers Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Flowers Foods.
Diversification Opportunities for MCEWEN MINING and Flowers Foods
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between MCEWEN and Flowers is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Flowers Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flowers Foods 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 Flowers Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flowers Foods has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Flowers Foods go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Flowers Foods
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.99 times more return on investment than Flowers Foods. However, MCEWEN MINING is 2.99 times more volatile than Flowers Foods. It trades about 0.03 of its potential returns per unit of risk. Flowers Foods is currently generating about -0.01 per unit of risk. If you would invest 645.00 in MCEWEN MINING INC on October 16, 2024 and sell it today you would earn a total of 170.00 from holding MCEWEN MINING INC or generate 26.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Flowers Foods
Performance |
| Timeline |
| MCEWEN MINING INC |
| Flowers Foods |
MCEWEN MINING and Flowers Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Flowers Foods
The main advantage of trading using opposite MCEWEN MINING and Flowers Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Flowers Foods 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 Flowers Foods will offset losses from the drop in Flowers Foods' long position.| MCEWEN MINING vs. Silicon Motion Technology | MCEWEN MINING vs. BORR DRILLING NEW | MCEWEN MINING vs. SILICON LABORATOR | MCEWEN MINING vs. CARSALESCOM |
| Flowers Foods vs. MAGNUM MINING EXP | Flowers Foods vs. ARDAGH METAL PACDL 0001 | Flowers Foods vs. Stag Industrial | Flowers Foods vs. MCEWEN MINING INC |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |