Correlation Between MCEWEN MINING and Halliburton
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Halliburton 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 Halliburton 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 Halliburton, you can compare the effects of market volatilities on MCEWEN MINING and Halliburton 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 Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Halliburton.
Diversification Opportunities for MCEWEN MINING and Halliburton
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Halliburton is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton 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 Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Halliburton go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Halliburton
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.97 times more return on investment than Halliburton. However, MCEWEN MINING is 1.97 times more volatile than Halliburton. It trades about 0.04 of its potential returns per unit of risk. Halliburton is currently generating about -0.03 per unit of risk. If you would invest 625.00 in MCEWEN MINING INC on September 12, 2024 and sell it today you would earn a total of 190.00 from holding MCEWEN MINING INC or generate 30.4% 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. Halliburton
Performance |
| Timeline |
| MCEWEN MINING INC |
| Halliburton |
MCEWEN MINING and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Halliburton
The main advantage of trading using opposite MCEWEN MINING and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Halliburton 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 Halliburton will offset losses from the drop in Halliburton's long position.| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Norsk Hydro ASA |
| Halliburton vs. Tenaris SA | Halliburton vs. NOV Inc | Halliburton vs. Superior Plus Corp | Halliburton vs. SIVERS SEMICONDUCTORS 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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