Correlation Between MCEWEN MINING and CSSC Offshore
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and CSSC Offshore 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 CSSC Offshore 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 CSSC Offshore Marine, you can compare the effects of market volatilities on MCEWEN MINING and CSSC Offshore 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 CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and CSSC Offshore.
Diversification Opportunities for MCEWEN MINING and CSSC Offshore
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and CSSC is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine 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 CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and CSSC Offshore go up and down completely randomly.
Pair Corralation between MCEWEN MINING and CSSC Offshore
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.36 times more return on investment than CSSC Offshore. However, MCEWEN MINING is 1.36 times more volatile than CSSC Offshore Marine. It trades about -0.16 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.26 per unit of risk. If you would invest 960.00 in MCEWEN MINING INC on August 29, 2024 and sell it today you would lose (140.00) from holding MCEWEN MINING INC or give up 14.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. CSSC Offshore Marine
Performance |
| Timeline |
| MCEWEN MINING INC |
| CSSC Offshore Marine |
MCEWEN MINING and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and CSSC Offshore
The main advantage of trading using opposite MCEWEN MINING and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, CSSC Offshore 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 CSSC Offshore will offset losses from the drop in CSSC Offshore's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
| CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |