Correlation Between MCEWEN MINING and Goodyear Tire
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Goodyear Tire 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 Tire 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 Tire Rubber, you can compare the effects of market volatilities on MCEWEN MINING and Goodyear Tire 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 Tire. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Goodyear Tire.
Diversification Opportunities for MCEWEN MINING and Goodyear Tire
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Goodyear is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Goodyear Tire Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodyear Tire 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 Tire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodyear Tire Rubber has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Goodyear Tire go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Goodyear Tire
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Goodyear Tire. In addition to that, MCEWEN MINING is 1.06 times more volatile than Goodyear Tire Rubber. It trades about -0.03 of its total potential returns per unit of risk. Goodyear Tire Rubber is currently generating about 0.02 per unit of volatility. If you would invest 871.00 in Goodyear Tire Rubber on September 19, 2024 and sell it today you would earn a total of 3.00 from holding Goodyear Tire Rubber or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Goodyear Tire Rubber
Performance |
| Timeline |
| MCEWEN MINING INC |
| Goodyear Tire Rubber |
MCEWEN MINING and Goodyear Tire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Goodyear Tire
The main advantage of trading using opposite MCEWEN MINING and Goodyear Tire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Goodyear Tire 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 Tire will offset losses from the drop in Goodyear Tire's long position.| MCEWEN MINING vs. Virtus Investment Partners | MCEWEN MINING vs. Chongqing Machinery Electric | MCEWEN MINING vs. Dairy Farm International | MCEWEN MINING vs. WIMFARM SA EO |
| Goodyear Tire vs. Carsales | Goodyear Tire vs. SALESFORCE INC CDR | Goodyear Tire vs. GungHo Online Entertainment | Goodyear Tire vs. Iridium Communications |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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