Correlation Between MCEWEN MINING and GBS Software
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and GBS Software 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 GBS Software 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 GBS Software AG, you can compare the effects of market volatilities on MCEWEN MINING and GBS Software 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 GBS Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and GBS Software.
Diversification Opportunities for MCEWEN MINING and GBS Software
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and GBS is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and GBS Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBS Software AG 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 GBS Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBS Software AG has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and GBS Software go up and down completely randomly.
Pair Corralation between MCEWEN MINING and GBS Software
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the GBS Software. In addition to that, MCEWEN MINING is 1.02 times more volatile than GBS Software AG. It trades about -0.11 of its total potential returns per unit of risk. GBS Software AG is currently generating about 0.3 per unit of volatility. If you would invest 258.00 in GBS Software AG on October 12, 2024 and sell it today you would earn a total of 40.00 from holding GBS Software AG or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
MCEWEN MINING INC vs. GBS Software AG
Performance |
| Timeline |
| MCEWEN MINING INC |
| GBS Software AG |
MCEWEN MINING and GBS Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and GBS Software
The main advantage of trading using opposite MCEWEN MINING and GBS Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, GBS Software 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 GBS Software will offset losses from the drop in GBS Software's long position.| MCEWEN MINING vs. Pentair plc | MCEWEN MINING vs. MOBILE FACTORY INC | MCEWEN MINING vs. SOGECLAIR SA INH | MCEWEN MINING vs. Charter Communications |
| GBS Software vs. Taiwan Semiconductor Manufacturing | GBS Software vs. MAGNUM MINING EXP | GBS Software vs. MCEWEN MINING INC | GBS Software vs. GREENX METALS LTD |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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