Correlation Between MCEWEN MINING and Marathon Petroleum
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Marathon Petroleum 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 Marathon Petroleum 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 Marathon Petroleum, you can compare the effects of market volatilities on MCEWEN MINING and Marathon Petroleum 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 Marathon Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Marathon Petroleum.
Diversification Opportunities for MCEWEN MINING and Marathon Petroleum
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Marathon is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Marathon Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Petroleum 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 Marathon Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Petroleum has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Marathon Petroleum go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Marathon Petroleum
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Marathon Petroleum. In addition to that, MCEWEN MINING is 1.71 times more volatile than Marathon Petroleum. It trades about -0.06 of its total potential returns per unit of risk. Marathon Petroleum is currently generating about -0.02 per unit of volatility. If you would invest 15,991 in Marathon Petroleum on August 30, 2024 and sell it today you would lose (1,321) from holding Marathon Petroleum or give up 8.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Marathon Petroleum
Performance |
| Timeline |
| MCEWEN MINING INC |
| Marathon Petroleum |
MCEWEN MINING and Marathon Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Marathon Petroleum
The main advantage of trading using opposite MCEWEN MINING and Marathon Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Marathon Petroleum 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 Marathon Petroleum will offset losses from the drop in Marathon Petroleum's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Talanx AG |
| Marathon Petroleum vs. Jacquet Metal Service | Marathon Petroleum vs. Zijin Mining Group | Marathon Petroleum vs. MCEWEN MINING INC | Marathon Petroleum vs. SALESFORCE INC CDR |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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