Correlation Between MCEWEN MINING and LIVZON PHARMAC
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and LIVZON PHARMAC 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 LIVZON PHARMAC 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 LIVZON PHARMAC GRP, you can compare the effects of market volatilities on MCEWEN MINING and LIVZON PHARMAC 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 LIVZON PHARMAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and LIVZON PHARMAC.
Diversification Opportunities for MCEWEN MINING and LIVZON PHARMAC
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCEWEN and LIVZON is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and LIVZON PHARMAC GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIVZON PHARMAC GRP 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 LIVZON PHARMAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIVZON PHARMAC GRP has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and LIVZON PHARMAC go up and down completely randomly.
Pair Corralation between MCEWEN MINING and LIVZON PHARMAC
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the LIVZON PHARMAC. But the stock apears to be less risky and, when comparing its historical volatility, MCEWEN MINING INC is 2.3 times less risky than LIVZON PHARMAC. The stock trades about -0.02 of its potential returns per unit of risk. The LIVZON PHARMAC GRP is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 156.00 in LIVZON PHARMAC GRP on September 12, 2024 and sell it today you would earn a total of 166.00 from holding LIVZON PHARMAC GRP or generate 106.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. LIVZON PHARMAC GRP
Performance |
| Timeline |
| MCEWEN MINING INC |
| LIVZON PHARMAC GRP |
MCEWEN MINING and LIVZON PHARMAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and LIVZON PHARMAC
The main advantage of trading using opposite MCEWEN MINING and LIVZON PHARMAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, LIVZON PHARMAC 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 LIVZON PHARMAC will offset losses from the drop in LIVZON PHARMAC's long position.| MCEWEN MINING vs. NEW PACIFIC METALS | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Norsk Hydro ASA |
| LIVZON PHARMAC vs. CanSino Biologics | LIVZON PHARMAC vs. Superior Plus Corp | LIVZON PHARMAC vs. SIVERS SEMICONDUCTORS AB | LIVZON PHARMAC vs. CHINA HUARONG ENERHD 50 |
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 Stocks Directory module to find actively traded stocks across global markets.
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