Correlation Between MCEWEN MINING and Golden Entertainment
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Golden Entertainment 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 Golden Entertainment 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 Golden Entertainment, you can compare the effects of market volatilities on MCEWEN MINING and Golden Entertainment 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 Golden Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Golden Entertainment.
Diversification Opportunities for MCEWEN MINING and Golden Entertainment
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Golden is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Golden Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Entertainment 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 Golden Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Entertainment has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Golden Entertainment go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Golden Entertainment
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.63 times less return on investment than Golden Entertainment. In addition to that, MCEWEN MINING is 1.85 times more volatile than Golden Entertainment. It trades about 0.03 of its total potential returns per unit of risk. Golden Entertainment is currently generating about 0.1 per unit of volatility. If you would invest 2,575 in Golden Entertainment on November 3, 2024 and sell it today you would earn a total of 565.00 from holding Golden Entertainment or generate 21.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Golden Entertainment
Performance |
| Timeline |
| MCEWEN MINING INC |
| Golden Entertainment |
MCEWEN MINING and Golden Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Golden Entertainment
The main advantage of trading using opposite MCEWEN MINING and Golden Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Golden Entertainment 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 Golden Entertainment will offset losses from the drop in Golden Entertainment's long position.| MCEWEN MINING vs. Rayonier Advanced Materials | MCEWEN MINING vs. Heidelberg Materials AG | MCEWEN MINING vs. China National Building | MCEWEN MINING vs. Dairy Farm International |
| Golden Entertainment vs. Citic Telecom International | Golden Entertainment vs. Singapore Telecommunications Limited | Golden Entertainment vs. Tyson Foods | Golden Entertainment vs. CN MODERN DAIRY |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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