Correlation Between MCEWEN MINING and NISSAN CHEMICAL
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING and NISSAN CHEMICAL 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 NISSAN CHEMICAL 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 NISSAN CHEMICAL IND, you can compare the effects of market volatilities on MCEWEN MINING and NISSAN CHEMICAL 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 NISSAN CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and NISSAN CHEMICAL.
Diversification Opportunities for MCEWEN MINING and NISSAN CHEMICAL
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and NISSAN is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and NISSAN CHEMICAL IND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISSAN CHEMICAL IND 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 NISSAN CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISSAN CHEMICAL IND has no effect on the direction of MCEWEN MINING i.e., MCEWEN MINING and NISSAN CHEMICAL go up and down completely randomly.
Pair Corralation between MCEWEN MINING and NISSAN CHEMICAL
Assuming the 90 days horizon MCEWEN MINING INC is expected to under-perform the NISSAN CHEMICAL. In addition to that, MCEWEN MINING is 3.27 times more volatile than NISSAN CHEMICAL IND. It trades about -0.2 of its total potential returns per unit of risk. NISSAN CHEMICAL IND is currently generating about 0.2 per unit of volatility. If you would invest 3,100 in NISSAN CHEMICAL IND on August 29, 2024 and sell it today you would earn a total of 160.00 from holding NISSAN CHEMICAL IND or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. NISSAN CHEMICAL IND
Performance |
| Timeline |
| MCEWEN MINING INC |
| NISSAN CHEMICAL IND |
MCEWEN MINING and NISSAN CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and NISSAN CHEMICAL
The main advantage of trading using opposite MCEWEN MINING and NISSAN CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING position performs unexpectedly, NISSAN CHEMICAL 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 NISSAN CHEMICAL will offset losses from the drop in NISSAN CHEMICAL's long position.| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Talanx AG |
| NISSAN CHEMICAL vs. Cass Information Systems | NISSAN CHEMICAL vs. MICRONIC MYDATA | NISSAN CHEMICAL vs. Fidelity National Information | NISSAN CHEMICAL vs. National Storage Affiliates |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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