Correlation Between MCEWEN MINING and LVMH Moët
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and LVMH Moët 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 LVMH Moët 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 LVMH Mot Hennessy, you can compare the effects of market volatilities on MCEWEN MINING and LVMH Moët 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 LVMH Moët. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and LVMH Moët.
Diversification Opportunities for MCEWEN MINING and LVMH Moët
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and LVMH is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and LVMH Mot Hennessy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LVMH Mot Hennessy 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 LVMH Moët. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LVMH Mot Hennessy has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and LVMH Moët go up and down completely randomly.
Pair Corralation between MCEWEN MINING and LVMH Moët
Assuming the 90 days horizon MCEWEN MINING is expected to generate 9.21 times less return on investment than LVMH Moët. In addition to that, MCEWEN MINING is 1.56 times more volatile than LVMH Mot Hennessy. It trades about 0.01 of its total potential returns per unit of risk. LVMH Mot Hennessy is currently generating about 0.11 per unit of volatility. If you would invest 61,346 in LVMH Mot Hennessy on November 7, 2024 and sell it today you would earn a total of 7,994 from holding LVMH Mot Hennessy or generate 13.03% 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. LVMH Mot Hennessy
Performance |
| Timeline |
| MCEWEN MINING INC |
| LVMH Mot Hennessy |
MCEWEN MINING and LVMH Moët Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and LVMH Moët
The main advantage of trading using opposite MCEWEN MINING and LVMH Moët positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, LVMH Moët 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 LVMH Moët will offset losses from the drop in LVMH Moët's long position.| MCEWEN MINING vs. Fresnillo plc | MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. Identiv |
| LVMH Moët vs. SLR Investment Corp | LVMH Moët vs. ECHO INVESTMENT ZY | LVMH Moët vs. Mitsui Chemicals | LVMH Moët vs. Keck Seng Investments |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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