Correlation Between MCEWEN MINING and GEAR4MUSIC
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and GEAR4MUSIC 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 GEAR4MUSIC 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 GEAR4MUSIC LS 10, you can compare the effects of market volatilities on MCEWEN MINING and GEAR4MUSIC 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 GEAR4MUSIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and GEAR4MUSIC.
Diversification Opportunities for MCEWEN MINING and GEAR4MUSIC
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between MCEWEN and GEAR4MUSIC is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and GEAR4MUSIC LS 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEAR4MUSIC LS 10 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 GEAR4MUSIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEAR4MUSIC LS 10 has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and GEAR4MUSIC go up and down completely randomly.
Pair Corralation between MCEWEN MINING and GEAR4MUSIC
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.1 times less return on investment than GEAR4MUSIC. In addition to that, MCEWEN MINING is 1.24 times more volatile than GEAR4MUSIC LS 10. It trades about 0.04 of its total potential returns per unit of risk. GEAR4MUSIC LS 10 is currently generating about 0.05 per unit of volatility. If you would invest 97.00 in GEAR4MUSIC LS 10 on November 7, 2024 and sell it today you would earn a total of 80.00 from holding GEAR4MUSIC LS 10 or generate 82.47% 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. GEAR4MUSIC LS 10
Performance |
| Timeline |
| MCEWEN MINING INC |
| GEAR4MUSIC LS 10 |
MCEWEN MINING and GEAR4MUSIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and GEAR4MUSIC
The main advantage of trading using opposite MCEWEN MINING and GEAR4MUSIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, GEAR4MUSIC 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 GEAR4MUSIC will offset losses from the drop in GEAR4MUSIC's long position.| MCEWEN MINING vs. Fresnillo plc | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. Identiv |
| GEAR4MUSIC vs. Chengdu PUTIAN Telecommunications | GEAR4MUSIC vs. GREENX METALS LTD | GEAR4MUSIC vs. Comba Telecom Systems | GEAR4MUSIC vs. HUTCHISON TELECOMM |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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