Correlation Between MCEWEN MINING and Mitie Group
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Mitie Group 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 Mitie Group 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 Mitie Group PLC, you can compare the effects of market volatilities on MCEWEN MINING and Mitie Group 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 Mitie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Mitie Group.
Diversification Opportunities for MCEWEN MINING and Mitie Group
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between MCEWEN and Mitie is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Mitie Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitie Group PLC 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 Mitie Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitie Group PLC has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Mitie Group go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Mitie Group
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the Mitie Group. In addition to that, MCEWEN MINING is 1.27 times more volatile than Mitie Group PLC. It trades about -0.26 of its total potential returns per unit of risk. Mitie Group PLC is currently generating about -0.01 per unit of volatility. If you would invest 119,400 in Mitie Group PLC on August 31, 2024 and sell it today you would lose (1,800) from holding Mitie Group PLC or give up 1.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Mitie Group PLC
Performance |
| Timeline |
| MCEWEN MINING INC |
| Mitie Group PLC |
MCEWEN MINING and Mitie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Mitie Group
The main advantage of trading using opposite MCEWEN MINING and Mitie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Mitie Group 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 Mitie Group will offset losses from the drop in Mitie Group's long position.| MCEWEN MINING vs. BLUESCOPE STEEL | MCEWEN MINING vs. MEDICAL FACILITIES NEW | MCEWEN MINING vs. IMAGIN MEDICAL INC | MCEWEN MINING vs. Avanos Medical |
| Mitie Group vs. FIREWEED METALS P | Mitie Group vs. MIRAMAR HOTEL INV | Mitie Group vs. DALATA HOTEL | Mitie Group vs. HYATT HOTELS A |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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