Correlation Between MCEWEN MINING and Kellogg
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Kellogg 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 Kellogg 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 Kellogg Company, you can compare the effects of market volatilities on MCEWEN MINING and Kellogg 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 Kellogg. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Kellogg.
Diversification Opportunities for MCEWEN MINING and Kellogg
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MCEWEN and Kellogg is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Kellogg Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellogg Company 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 Kellogg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellogg Company has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Kellogg go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Kellogg
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.57 times more return on investment than Kellogg. However, MCEWEN MINING is 2.57 times more volatile than Kellogg Company. It trades about 0.04 of its potential returns per unit of risk. Kellogg Company is currently generating about 0.05 per unit of risk. If you would invest 580.00 in MCEWEN MINING INC on November 5, 2024 and sell it today you would earn a total of 240.00 from holding MCEWEN MINING INC or generate 41.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Kellogg Company
Performance |
| Timeline |
| MCEWEN MINING INC |
| Kellogg Company |
MCEWEN MINING and Kellogg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Kellogg
The main advantage of trading using opposite MCEWEN MINING and Kellogg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Kellogg 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 Kellogg will offset losses from the drop in Kellogg's long position.| MCEWEN MINING vs. HAVERTY FURNITURE A | MCEWEN MINING vs. KIMBALL ELECTRONICS | MCEWEN MINING vs. Delta Electronics Public | MCEWEN MINING vs. American Homes 4 |
| Kellogg vs. ITALIAN WINE BRANDS | Kellogg vs. CHINA TONTINE WINES | Kellogg vs. MUTUIONLINE | Kellogg vs. SILICON LABORATOR |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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