Correlation Between MCEWEN MINING and MAG SILVER
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and MAG SILVER 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 MAG SILVER 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 MAG SILVER, you can compare the effects of market volatilities on MCEWEN MINING and MAG SILVER 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 MAG SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and MAG SILVER.
Diversification Opportunities for MCEWEN MINING and MAG SILVER
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MCEWEN and MAG is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and MAG SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG SILVER 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 MAG SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG SILVER has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and MAG SILVER go up and down completely randomly.
Pair Corralation between MCEWEN MINING and MAG SILVER
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the MAG SILVER. But the stock apears to be less risky and, when comparing its historical volatility, MCEWEN MINING INC is 1.23 times less risky than MAG SILVER. The stock trades about -0.01 of its potential returns per unit of risk. The MAG SILVER is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,395 in MAG SILVER on November 4, 2024 and sell it today you would earn a total of 188.00 from holding MAG SILVER or generate 13.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. MAG SILVER
Performance |
| Timeline |
| MCEWEN MINING INC |
| MAG SILVER |
MCEWEN MINING and MAG SILVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and MAG SILVER
The main advantage of trading using opposite MCEWEN MINING and MAG SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, MAG SILVER 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 MAG SILVER will offset losses from the drop in MAG SILVER's long position.| MCEWEN MINING vs. Harmony Gold Mining | MCEWEN MINING vs. Telecom Argentina SA | MCEWEN MINING vs. TELECOM ITALIA | MCEWEN MINING vs. SK TELECOM TDADR |
| MAG SILVER vs. Spirent Communications plc | MAG SILVER vs. Chengdu PUTIAN Telecommunications | MAG SILVER vs. ITALIAN WINE BRANDS | MAG SILVER vs. Ross Stores |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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