Correlation Between MCEWEN MINING and Mid-America Apartment
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Mid-America Apartment 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 Mid-America Apartment 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 Mid America Apartment Communities, you can compare the effects of market volatilities on MCEWEN MINING and Mid-America Apartment 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 Mid-America Apartment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Mid-America Apartment.
Diversification Opportunities for MCEWEN MINING and Mid-America Apartment
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Mid-America is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Mid America Apartment Communit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid America Apartment 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 Mid-America Apartment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid America Apartment has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Mid-America Apartment go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Mid-America Apartment
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 2.72 times more return on investment than Mid-America Apartment. However, MCEWEN MINING is 2.72 times more volatile than Mid America Apartment Communities. It trades about 0.05 of its potential returns per unit of risk. Mid America Apartment Communities is currently generating about -0.07 per unit of risk. If you would invest 755.00 in MCEWEN MINING INC on October 11, 2024 and sell it today you would earn a total of 30.00 from holding MCEWEN MINING INC or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Mid America Apartment Communit
Performance |
| Timeline |
| MCEWEN MINING INC |
| Mid America Apartment |
MCEWEN MINING and Mid-America Apartment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Mid-America Apartment
The main advantage of trading using opposite MCEWEN MINING and Mid-America Apartment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Mid-America Apartment 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 Mid-America Apartment will offset losses from the drop in Mid-America Apartment's long position.| MCEWEN MINING vs. TOREX SEMICONDUCTOR LTD | MCEWEN MINING vs. Phibro Animal Health | MCEWEN MINING vs. Acadia Healthcare | MCEWEN MINING vs. Nordic Semiconductor ASA |
| Mid-America Apartment vs. GALENA MINING LTD | Mid-America Apartment vs. MCEWEN MINING INC | Mid-America Apartment vs. Northern Data AG | Mid-America Apartment vs. Alliance Data Systems |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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