Correlation Between MCEWEN MINING and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Gol Intelligent 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 Gol Intelligent 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 Gol Intelligent Airlines, you can compare the effects of market volatilities on MCEWEN MINING and Gol Intelligent 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 Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Gol Intelligent.
Diversification Opportunities for MCEWEN MINING and Gol Intelligent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MCEWEN and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Gol Intelligent Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gol Intelligent Airlines 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 Gol Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gol Intelligent Airlines has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Gol Intelligent go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Gol Intelligent
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 0.5 times more return on investment than Gol Intelligent. However, MCEWEN MINING INC is 1.99 times less risky than Gol Intelligent. It trades about 0.04 of its potential returns per unit of risk. Gol Intelligent Airlines is currently generating about -0.01 per unit of risk. If you would invest 535.00 in MCEWEN MINING INC on August 29, 2024 and sell it today you would earn a total of 260.00 from holding MCEWEN MINING INC or generate 48.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Gol Intelligent Airlines
Performance |
| Timeline |
| MCEWEN MINING INC |
| Gol Intelligent Airlines |
MCEWEN MINING and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Gol Intelligent
The main advantage of trading using opposite MCEWEN MINING and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Gol Intelligent 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 Gol Intelligent will offset losses from the drop in Gol Intelligent'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 |
| Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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