Correlation Between MCEWEN MINING and GOODYEAR T
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and GOODYEAR T 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 GOODYEAR T 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 GOODYEAR T RUBBER, you can compare the effects of market volatilities on MCEWEN MINING and GOODYEAR T 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 GOODYEAR T. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and GOODYEAR T.
Diversification Opportunities for MCEWEN MINING and GOODYEAR T
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and GOODYEAR is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and GOODYEAR T RUBBER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOODYEAR T RUBBER 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 GOODYEAR T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOODYEAR T RUBBER has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and GOODYEAR T go up and down completely randomly.
Pair Corralation between MCEWEN MINING and GOODYEAR T
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.02 times more return on investment than GOODYEAR T. However, MCEWEN MINING is 1.02 times more volatile than GOODYEAR T RUBBER. It trades about 0.1 of its potential returns per unit of risk. GOODYEAR T RUBBER is currently generating about 0.06 per unit of risk. If you would invest 785.00 in MCEWEN MINING INC on November 7, 2024 and sell it today you would earn a total of 35.00 from holding MCEWEN MINING INC or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
MCEWEN MINING INC vs. GOODYEAR T RUBBER
Performance |
| Timeline |
| MCEWEN MINING INC |
| GOODYEAR T RUBBER |
MCEWEN MINING and GOODYEAR T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and GOODYEAR T
The main advantage of trading using opposite MCEWEN MINING and GOODYEAR T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, GOODYEAR T 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 GOODYEAR T will offset losses from the drop in GOODYEAR T's long position.| MCEWEN MINING vs. Addtech AB | MCEWEN MINING vs. PT Steel Pipe | MCEWEN MINING vs. Tianjin Capital Environmental | MCEWEN MINING vs. ELL ENVIRONHLDGS HD 0001 |
| GOODYEAR T vs. CARDINAL HEALTH | GOODYEAR T vs. Cardinal Health | GOODYEAR T vs. OPKO HEALTH | GOODYEAR T vs. Sims Metal Management |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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