Correlation Between MCEWEN MINING and Lion One
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on MCEWEN MINING and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Lion One.
Diversification Opportunities for MCEWEN MINING and Lion One
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MCEWEN and Lion is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Lion One go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Lion One
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Lion One. In addition to that, MCEWEN MINING is 1.18 times more volatile than Lion One Metals. It trades about -0.17 of its total potential returns per unit of risk. Lion One Metals is currently generating about -0.19 per unit of volatility. If you would invest 22.00 in Lion One Metals on August 28, 2024 and sell it today you would lose (3.00) from holding Lion One Metals or give up 13.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Lion One Metals
Performance |
| Timeline |
| MCEWEN MINING INC |
| Lion One Metals |
MCEWEN MINING and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Lion One
The main advantage of trading using opposite MCEWEN MINING and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One'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 |
| Lion One vs. Franco Nevada | Lion One vs. Agnico Eagle Mines | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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