Correlation Between MCEWEN MINING and Welltower
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Welltower 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 Welltower 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 Welltower, you can compare the effects of market volatilities on MCEWEN MINING and Welltower 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 Welltower. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Welltower.
Diversification Opportunities for MCEWEN MINING and Welltower
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Welltower is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Welltower in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Welltower 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 Welltower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Welltower has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Welltower go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Welltower
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.71 times less return on investment than Welltower. In addition to that, MCEWEN MINING is 1.82 times more volatile than Welltower. It trades about 0.1 of its total potential returns per unit of risk. Welltower is currently generating about 0.3 per unit of volatility. If you would invest 12,050 in Welltower on November 3, 2024 and sell it today you would earn a total of 1,095 from holding Welltower or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Welltower
Performance |
| Timeline |
| MCEWEN MINING INC |
| Welltower |
MCEWEN MINING and Welltower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Welltower
The main advantage of trading using opposite MCEWEN MINING and Welltower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Welltower 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 Welltower will offset losses from the drop in Welltower's long position.| MCEWEN MINING vs. Rayonier Advanced Materials | MCEWEN MINING vs. Heidelberg Materials AG | MCEWEN MINING vs. China National Building | MCEWEN MINING vs. Dairy Farm International |
| Welltower vs. Healthpeak Properties | Welltower vs. Omega Healthcare Investors | Welltower vs. Medical Properties Trust | Welltower vs. Sabra Health Care |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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