Correlation Between MCEWEN MINING and KKR Co
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and KKR Co 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 KKR Co 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 KKR Co LP, you can compare the effects of market volatilities on MCEWEN MINING and KKR Co 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 KKR Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and KKR Co.
Diversification Opportunities for MCEWEN MINING and KKR Co
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and KKR is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and KKR Co LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR Co LP 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 KKR Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR Co LP has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and KKR Co go up and down completely randomly.
Pair Corralation between MCEWEN MINING and KKR Co
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.79 times less return on investment than KKR Co. In addition to that, MCEWEN MINING is 1.88 times more volatile than KKR Co LP. It trades about 0.04 of its total potential returns per unit of risk. KKR Co LP is currently generating about 0.13 per unit of volatility. If you would invest 4,475 in KKR Co LP on September 3, 2024 and sell it today you would earn a total of 10,823 from holding KKR Co LP or generate 241.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. KKR Co LP
Performance |
| Timeline |
| MCEWEN MINING INC |
| KKR Co LP |
MCEWEN MINING and KKR Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and KKR Co
The main advantage of trading using opposite MCEWEN MINING and KKR Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, KKR Co 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 KKR Co will offset losses from the drop in KKR Co'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 |
| KKR Co vs. MCEWEN MINING INC | KKR Co vs. Natural Health Trends | KKR Co vs. ULTRA CLEAN HLDGS | KKR Co vs. GRIFFIN MINING 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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