Correlation Between MCEWEN MINING and Mitsubishi Gas
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Mitsubishi Gas 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 Mitsubishi Gas 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 Mitsubishi Gas Chemical, you can compare the effects of market volatilities on MCEWEN MINING and Mitsubishi Gas 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 Mitsubishi Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Mitsubishi Gas.
Diversification Opportunities for MCEWEN MINING and Mitsubishi Gas
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MCEWEN and Mitsubishi is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Mitsubishi Gas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi Gas Chemical 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 Mitsubishi Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi Gas Chemical has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Mitsubishi Gas go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Mitsubishi Gas
Assuming the 90 days horizon MCEWEN MINING INC is expected to generate 1.75 times more return on investment than Mitsubishi Gas. However, MCEWEN MINING is 1.75 times more volatile than Mitsubishi Gas Chemical. It trades about 0.09 of its potential returns per unit of risk. Mitsubishi Gas Chemical is currently generating about -0.02 per unit of risk. If you would invest 790.00 in MCEWEN MINING INC on October 16, 2024 and sell it today you would earn a total of 25.00 from holding MCEWEN MINING INC or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Mitsubishi Gas Chemical
Performance |
| Timeline |
| MCEWEN MINING INC |
| Mitsubishi Gas Chemical |
MCEWEN MINING and Mitsubishi Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Mitsubishi Gas
The main advantage of trading using opposite MCEWEN MINING and Mitsubishi Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Mitsubishi Gas 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 Mitsubishi Gas will offset losses from the drop in Mitsubishi Gas' long position.| MCEWEN MINING vs. GAMESTOP | MCEWEN MINING vs. MOVIE GAMES SA | MCEWEN MINING vs. CONTAGIOUS GAMING INC | MCEWEN MINING vs. GameStop Corp |
| Mitsubishi Gas vs. Burlington Stores | Mitsubishi Gas vs. Pentair plc | Mitsubishi Gas vs. JIAHUA STORES | Mitsubishi Gas vs. ALTAIR RES INC |
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 Directory module to find actively traded commodities issued by global exchanges.
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