Correlation Between MCEWEN MINING and Central Japan
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Central Japan 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 Central Japan 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 Central Japan Railway, you can compare the effects of market volatilities on MCEWEN MINING and Central Japan 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 Central Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Central Japan.
Diversification Opportunities for MCEWEN MINING and Central Japan
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MCEWEN and Central is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Central Japan Railway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Japan Railway 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 Central Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Japan Railway has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Central Japan go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Central Japan
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.79 times more return on investment than Central Japan. However, MCEWEN MINING is 1.79 times more volatile than Central Japan Railway. It trades about 0.09 of its potential returns per unit of risk. Central Japan Railway is currently generating about -0.17 per unit of risk. If you would invest 790.00 in MCEWEN MINING INC on October 16, 2024 and sell it today you would earn a total of 25.00 from holding MCEWEN MINING INC or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Central Japan Railway
Performance |
| Timeline |
| MCEWEN MINING INC |
| Central Japan Railway |
MCEWEN MINING and Central Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Central Japan
The main advantage of trading using opposite MCEWEN MINING and Central Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Central Japan 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 Central Japan will offset losses from the drop in Central Japan's long position.| MCEWEN MINING vs. Silicon Motion Technology | MCEWEN MINING vs. BORR DRILLING NEW | MCEWEN MINING vs. SILICON LABORATOR | MCEWEN MINING vs. CARSALESCOM |
| Central Japan vs. GOLD ROAD RES | Central Japan vs. QUEEN S ROAD | Central Japan vs. BE Semiconductor Industries | Central Japan vs. Magnachip Semiconductor |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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