Correlation Between MCEWEN MINING and KINGBOARD CHEMICAL
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL, you can compare the effects of market volatilities on MCEWEN MINING and KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and KINGBOARD CHEMICAL.
Diversification Opportunities for MCEWEN MINING and KINGBOARD CHEMICAL
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MCEWEN and KINGBOARD is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and KINGBOARD CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINGBOARD CHEMICAL has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and KINGBOARD CHEMICAL go up and down completely randomly.
Pair Corralation between MCEWEN MINING and KINGBOARD CHEMICAL
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the KINGBOARD CHEMICAL. In addition to that, MCEWEN MINING is 1.82 times more volatile than KINGBOARD CHEMICAL. It trades about -0.2 of its total potential returns per unit of risk. KINGBOARD CHEMICAL is currently generating about -0.03 per unit of volatility. If you would invest 228.00 in KINGBOARD CHEMICAL on August 29, 2024 and sell it today you would lose (4.00) from holding KINGBOARD CHEMICAL or give up 1.75% 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. KINGBOARD CHEMICAL
Performance |
| Timeline |
| MCEWEN MINING INC |
| KINGBOARD CHEMICAL |
MCEWEN MINING and KINGBOARD CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and KINGBOARD CHEMICAL
The main advantage of trading using opposite MCEWEN MINING and KINGBOARD CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL will offset losses from the drop in KINGBOARD CHEMICAL's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Talanx AG |
| KINGBOARD CHEMICAL vs. Apple Inc | KINGBOARD CHEMICAL vs. Apple Inc | KINGBOARD CHEMICAL vs. Superior Plus Corp | KINGBOARD CHEMICAL vs. SIVERS SEMICONDUCTORS AB |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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