Correlation Between MCEWEN MINING and International Consolidated
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and International Consolidated 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 International Consolidated 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 International Consolidated Airlines, you can compare the effects of market volatilities on MCEWEN MINING and International Consolidated 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 International Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and International Consolidated.
Diversification Opportunities for MCEWEN MINING and International Consolidated
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and International is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and International Consolidated Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Consolidated 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 International Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Consolidated has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and International Consolidated go up and down completely randomly.
Pair Corralation between MCEWEN MINING and International Consolidated
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the International Consolidated. In addition to that, MCEWEN MINING is 1.29 times more volatile than International Consolidated Airlines. It trades about -0.25 of its total potential returns per unit of risk. International Consolidated Airlines is currently generating about 0.05 per unit of volatility. If you would invest 411.00 in International Consolidated Airlines on December 4, 2024 and sell it today you would earn a total of 8.00 from holding International Consolidated Airlines or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MCEWEN MINING INC vs. International Consolidated Air
Performance |
| Timeline |
| MCEWEN MINING INC |
| International Consolidated |
MCEWEN MINING and International Consolidated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and International Consolidated
The main advantage of trading using opposite MCEWEN MINING and International Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, International Consolidated 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 International Consolidated will offset losses from the drop in International Consolidated's long position.| MCEWEN MINING vs. Kingdee International Software | MCEWEN MINING vs. Magic Software Enterprises | MCEWEN MINING vs. Guidewire Software | MCEWEN MINING vs. MAGIC SOFTWARE ENTR |
| International Consolidated vs. SBA Communications Corp | International Consolidated vs. Iridium Communications | International Consolidated vs. Nomad Foods | International Consolidated vs. FONIX MOBILE PLC |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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