Correlation Between MCEWEN MINING and Nordic Semiconductor
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and Nordic Semiconductor 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 Nordic Semiconductor 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 Nordic Semiconductor ASA, you can compare the effects of market volatilities on MCEWEN MINING and Nordic Semiconductor 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 Nordic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Nordic Semiconductor.
Diversification Opportunities for MCEWEN MINING and Nordic Semiconductor
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MCEWEN and Nordic is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Nordic Semiconductor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Semiconductor ASA 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 Nordic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Semiconductor ASA has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and Nordic Semiconductor go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Nordic Semiconductor
Assuming the 90 days horizon MCEWEN MINING is expected to generate 3.87 times less return on investment than Nordic Semiconductor. In addition to that, MCEWEN MINING is 1.91 times more volatile than Nordic Semiconductor ASA. It trades about 0.09 of its total potential returns per unit of risk. Nordic Semiconductor ASA is currently generating about 0.69 per unit of volatility. If you would invest 853.00 in Nordic Semiconductor ASA on October 30, 2024 and sell it today you would earn a total of 158.00 from holding Nordic Semiconductor ASA or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Nordic Semiconductor ASA
Performance |
| Timeline |
| MCEWEN MINING INC |
| Nordic Semiconductor ASA |
MCEWEN MINING and Nordic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Nordic Semiconductor
The main advantage of trading using opposite MCEWEN MINING and Nordic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, Nordic Semiconductor 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 Nordic Semiconductor will offset losses from the drop in Nordic Semiconductor's long position.| MCEWEN MINING vs. CAL MAINE FOODS | MCEWEN MINING vs. RYANAIR HLDGS ADR | MCEWEN MINING vs. United Natural Foods | MCEWEN MINING vs. PREMIER FOODS |
| Nordic Semiconductor vs. SIEM OFFSHORE NEW | Nordic Semiconductor vs. GEELY AUTOMOBILE | Nordic Semiconductor vs. SOLSTAD OFFSHORE NK | Nordic Semiconductor vs. Wayside Technology Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |