Correlation Between MCEWEN MINING and Ipsen SA
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Ipsen SA 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 Ipsen SA 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 Ipsen SA, you can compare the effects of market volatilities on MCEWEN MINING and Ipsen SA 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 Ipsen SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Ipsen SA.
Diversification Opportunities for MCEWEN MINING and Ipsen SA
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and Ipsen is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Ipsen SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ipsen SA 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 Ipsen SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ipsen SA has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Ipsen SA go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Ipsen SA
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Ipsen SA. In addition to that, MCEWEN MINING is 2.37 times more volatile than Ipsen SA. It trades about -0.08 of its total potential returns per unit of risk. Ipsen SA is currently generating about 0.03 per unit of volatility. If you would invest 11,510 in Ipsen SA on October 26, 2024 and sell it today you would earn a total of 220.00 from holding Ipsen SA or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Ipsen SA
Performance |
| Timeline |
| MCEWEN MINING INC |
| Ipsen SA |
MCEWEN MINING and Ipsen SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Ipsen SA
The main advantage of trading using opposite MCEWEN MINING and Ipsen SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Ipsen SA 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 Ipsen SA will offset losses from the drop in Ipsen SA's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. Identiv | MCEWEN MINING vs. INTUITIVE SURGICAL |
| Ipsen SA vs. SBM OFFSHORE | Ipsen SA vs. FLOW TRADERS LTD | Ipsen SA vs. GALENA MINING LTD | Ipsen SA vs. MCEWEN MINING INC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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