Correlation Between MCEWEN MINING and Humana
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Humana 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 Humana 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 Humana Inc, you can compare the effects of market volatilities on MCEWEN MINING and Humana 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 Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Humana.
Diversification Opportunities for MCEWEN MINING and Humana
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Humana is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc 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 Humana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humana Inc has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Humana go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Humana
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.31 times more return on investment than Humana. However, MCEWEN MINING is 1.31 times more volatile than Humana Inc. It trades about 0.03 of its potential returns per unit of risk. Humana Inc is currently generating about -0.05 per unit of risk. If you would invest 685.00 in MCEWEN MINING INC on September 2, 2024 and sell it today you would earn a total of 100.00 from holding MCEWEN MINING INC or generate 14.6% 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. Humana Inc
Performance |
| Timeline |
| MCEWEN MINING INC |
| Humana Inc |
MCEWEN MINING and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Humana
The main advantage of trading using opposite MCEWEN MINING and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Humana 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 Humana will offset losses from the drop in Humana's long position.| MCEWEN MINING vs. LG Electronics | MCEWEN MINING vs. LIFENET INSURANCE CO | MCEWEN MINING vs. STMicroelectronics NV | MCEWEN MINING vs. Electronic Arts |
| Humana vs. ScanSource | Humana vs. CENTURIA OFFICE REIT | Humana vs. 24SEVENOFFICE GROUP AB | Humana vs. MTI WIRELESS EDGE |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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