Correlation Between MCEWEN MINING and REVO INSURANCE
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and REVO INSURANCE 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 REVO INSURANCE 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 REVO INSURANCE SPA, you can compare the effects of market volatilities on MCEWEN MINING and REVO INSURANCE 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 REVO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and REVO INSURANCE.
Diversification Opportunities for MCEWEN MINING and REVO INSURANCE
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and REVO is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and REVO INSURANCE SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REVO INSURANCE SPA 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 REVO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REVO INSURANCE SPA has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and REVO INSURANCE go up and down completely randomly.
Pair Corralation between MCEWEN MINING and REVO INSURANCE
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 0.63 times more return on investment than REVO INSURANCE. However, MCEWEN MINING INC is 1.58 times less risky than REVO INSURANCE. It trades about 0.08 of its potential returns per unit of risk. REVO INSURANCE SPA is currently generating about 0.01 per unit of risk. If you would invest 765.00 in MCEWEN MINING INC on October 27, 2024 and sell it today you would earn a total of 25.00 from holding MCEWEN MINING INC or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. REVO INSURANCE SPA
Performance |
| Timeline |
| MCEWEN MINING INC |
| REVO INSURANCE SPA |
MCEWEN MINING and REVO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and REVO INSURANCE
The main advantage of trading using opposite MCEWEN MINING and REVO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, REVO INSURANCE 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 REVO INSURANCE will offset losses from the drop in REVO INSURANCE's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. Identiv | MCEWEN MINING vs. INTUITIVE SURGICAL |
| REVO INSURANCE vs. CANON MARKETING JP | REVO INSURANCE vs. Townsquare Media | REVO INSURANCE vs. Flutter Entertainment PLC | REVO INSURANCE vs. Indutrade 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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