Correlation Between MCEWEN MINING and GEELY AUTOMOBILE
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE 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 GEELY AUTOMOBILE, you can compare the effects of market volatilities on MCEWEN MINING and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and GEELY AUTOMOBILE.
Diversification Opportunities for MCEWEN MINING and GEELY AUTOMOBILE
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and GEELY is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and GEELY AUTOMOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEELY AUTOMOBILE 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 GEELY AUTOMOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEELY AUTOMOBILE has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and GEELY AUTOMOBILE go up and down completely randomly.
Pair Corralation between MCEWEN MINING and GEELY AUTOMOBILE
Assuming the 90 days horizon MCEWEN MINING is expected to generate 11.39 times less return on investment than GEELY AUTOMOBILE. In addition to that, MCEWEN MINING is 1.36 times more volatile than GEELY AUTOMOBILE. It trades about 0.01 of its total potential returns per unit of risk. GEELY AUTOMOBILE is currently generating about 0.09 per unit of volatility. If you would invest 166.00 in GEELY AUTOMOBILE on October 19, 2024 and sell it today you would earn a total of 12.00 from holding GEELY AUTOMOBILE or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. GEELY AUTOMOBILE
Performance |
| Timeline |
| MCEWEN MINING INC |
| GEELY AUTOMOBILE |
MCEWEN MINING and GEELY AUTOMOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and GEELY AUTOMOBILE
The main advantage of trading using opposite MCEWEN MINING and GEELY AUTOMOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, GEELY AUTOMOBILE 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 GEELY AUTOMOBILE will offset losses from the drop in GEELY AUTOMOBILE's long position.| MCEWEN MINING vs. Canon Marketing Japan | MCEWEN MINING vs. FLOW TRADERS LTD | MCEWEN MINING vs. RETAIL FOOD GROUP | MCEWEN MINING vs. MARKET VECTR RETAIL |
| GEELY AUTOMOBILE vs. USU Software AG | GEELY AUTOMOBILE vs. Monument Mining Limited | GEELY AUTOMOBILE vs. MCEWEN MINING INC | GEELY AUTOMOBILE vs. FORMPIPE SOFTWARE AB |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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