Correlation Between MCEWEN MINING and Genco Shipping
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Genco Shipping 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 Genco Shipping 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 Genco Shipping Trading, you can compare the effects of market volatilities on MCEWEN MINING and Genco Shipping 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 Genco Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Genco Shipping.
Diversification Opportunities for MCEWEN MINING and Genco Shipping
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Genco is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Genco Shipping Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genco Shipping Trading 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 Genco Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genco Shipping Trading has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Genco Shipping go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Genco Shipping
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Genco Shipping. In addition to that, MCEWEN MINING is 2.08 times more volatile than Genco Shipping Trading. It trades about -0.2 of its total potential returns per unit of risk. Genco Shipping Trading is currently generating about 0.28 per unit of volatility. If you would invest 1,417 in Genco Shipping Trading on August 30, 2024 and sell it today you would earn a total of 170.00 from holding Genco Shipping Trading or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Genco Shipping Trading
Performance |
| Timeline |
| MCEWEN MINING INC |
| Genco Shipping Trading |
MCEWEN MINING and Genco Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Genco Shipping
The main advantage of trading using opposite MCEWEN MINING and Genco Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Genco Shipping 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 Genco Shipping will offset losses from the drop in Genco Shipping's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Talanx AG |
| Genco Shipping vs. PACIFIC ONLINE | Genco Shipping vs. FAST RETAIL ADR | Genco Shipping vs. BURLINGTON STORES | Genco Shipping vs. YATRA ONLINE DL 0001 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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