Correlation Between MCEWEN MINING and Mitsui Chemicals
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Mitsui Chemicals 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 Mitsui Chemicals 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 Mitsui Chemicals, you can compare the effects of market volatilities on MCEWEN MINING and Mitsui Chemicals 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 Mitsui Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Mitsui Chemicals.
Diversification Opportunities for MCEWEN MINING and Mitsui Chemicals
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCEWEN and Mitsui is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Mitsui Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsui Chemicals 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 Mitsui Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsui Chemicals has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Mitsui Chemicals go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Mitsui Chemicals
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Mitsui Chemicals. In addition to that, MCEWEN MINING is 1.69 times more volatile than Mitsui Chemicals. It trades about -0.2 of its total potential returns per unit of risk. Mitsui Chemicals is currently generating about 0.1 per unit of volatility. If you would invest 2,100 in Mitsui Chemicals on August 29, 2024 and sell it today you would earn a total of 100.00 from holding Mitsui Chemicals or generate 4.76% 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. Mitsui Chemicals
Performance |
| Timeline |
| MCEWEN MINING INC |
| Mitsui Chemicals |
MCEWEN MINING and Mitsui Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Mitsui Chemicals
The main advantage of trading using opposite MCEWEN MINING and Mitsui Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Mitsui Chemicals 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 Mitsui Chemicals will offset losses from the drop in Mitsui Chemicals' long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Talanx AG |
| Mitsui Chemicals vs. Apple Inc | Mitsui Chemicals vs. Apple Inc | Mitsui Chemicals vs. Superior Plus Corp | Mitsui Chemicals vs. SIVERS SEMICONDUCTORS AB |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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