Correlation Between MCEWEN MINING and Klöckner
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Klöckner 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 Klöckner 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 Klckner Co SE, you can compare the effects of market volatilities on MCEWEN MINING and Klöckner 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 Klöckner. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Klöckner.
Diversification Opportunities for MCEWEN MINING and Klöckner
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and Klöckner is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Klckner Co SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klckner Co SE 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 Klöckner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klckner Co SE has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Klöckner go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Klöckner
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.04 times more return on investment than Klöckner. However, MCEWEN MINING is 2.04 times more volatile than Klckner Co SE. It trades about -0.04 of its potential returns per unit of risk. Klckner Co SE is currently generating about -0.12 per unit of risk. If you would invest 1,020 in MCEWEN MINING INC on September 3, 2024 and sell it today you would lose (235.00) from holding MCEWEN MINING INC or give up 23.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Klckner Co SE
Performance |
| Timeline |
| MCEWEN MINING INC |
| Klckner Co SE |
MCEWEN MINING and Klöckner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Klöckner
The main advantage of trading using opposite MCEWEN MINING and Klöckner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Klöckner 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 Klöckner will offset losses from the drop in Klöckner's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
| Klöckner vs. MCEWEN MINING INC | Klöckner vs. GRUPO CARSO A1 | Klöckner vs. HYATT HOTELS A | Klöckner vs. Choice Hotels International |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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