Correlation Between MCEWEN MINING and Heidelberg Materials
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Heidelberg Materials 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 Heidelberg Materials 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 Heidelberg Materials AG, you can compare the effects of market volatilities on MCEWEN MINING and Heidelberg Materials 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 Heidelberg Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Heidelberg Materials.
Diversification Opportunities for MCEWEN MINING and Heidelberg Materials
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Heidelberg is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Heidelberg Materials AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heidelberg Materials 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 Heidelberg Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heidelberg Materials has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Heidelberg Materials go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Heidelberg Materials
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.53 times less return on investment than Heidelberg Materials. In addition to that, MCEWEN MINING is 2.49 times more volatile than Heidelberg Materials AG. It trades about 0.04 of its total potential returns per unit of risk. Heidelberg Materials AG is currently generating about 0.16 per unit of volatility. If you would invest 6,899 in Heidelberg Materials AG on September 14, 2024 and sell it today you would earn a total of 5,681 from holding Heidelberg Materials AG or generate 82.35% 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. Heidelberg Materials AG
Performance |
| Timeline |
| MCEWEN MINING INC |
| Heidelberg Materials |
MCEWEN MINING and Heidelberg Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Heidelberg Materials
The main advantage of trading using opposite MCEWEN MINING and Heidelberg Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Heidelberg Materials 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 Heidelberg Materials will offset losses from the drop in Heidelberg Materials' 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 |
| Heidelberg Materials vs. Solstad Offshore ASA | Heidelberg Materials vs. MCEWEN MINING INC | Heidelberg Materials vs. DISTRICT METALS | Heidelberg Materials vs. ADRIATIC METALS LS 013355 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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